Looking for a Form 8824 Templates? Download it for free!

Page 4 of 4 2011 Instructions for Form 8824

9:25 - 12-SEP-2011

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

the cost of replacement property

1. Use Part III of Form 4797 as a

to a form or its instructions must be

purchased within 60 days after the sale.

worksheet to figure ordinary income

retained as long as their contents may

(You also must recognize any ordinary

under the recapture rules.

become material in the administration of

income recapture.) Permitted property is

2. Enter on Form 8824, line 35, the

any Internal Revenue law. Generally, tax

any obligation of the United States or any

amount from Form 4797, line 31. Do not

returns and return information are

diversified investment fund approved by

attach the Form 4797 used as a

confidential, as required by section 6103.

the OGE.

worksheet to your return.

The time needed to complete and file

3. Report the amount from line 35 on

this form will vary depending on individual

If the property you sold was stock

Form 4797, line 10, column (g). In column

circumstances. The estimated burden for

you acquired by exercising a

TIP

(a), write “From Form 8824, line 35.” Do

individual taxpayers filing this form is

statutory stock option, you may be

not complete columns (b) through (f).

approved under OMB control number

treated as meeting the holding periods

1545-0074 and is included in the

that apply to such stock, regardless of

Line 36. If you sold a capital asset, enter

estimates shown in the instructions for

how long you actually held the stock. This

any capital gain from line 36 on Schedule

their individual income tax return. The

may benefit you if you do not defer your

D. If you sold property used in a trade or

estimated burden for all other taxpayers

entire gain, because it may allow you to

business (or any other asset for which the

who file this form is shown below.

treat the gain as a capital gain instead of

gain is treated as ordinary income), report

ordinary income. For details, see section

the gain on Form 4797, line 2 or line 10,

Recordkeeping . . . . . . . 10 hr., 17 min.

421(d) or Pub. 525, Taxable and

column (g). In column (a), write “From

Learning about

Nontaxable Income.

Form 8824, line 36.” Do not complete

the law or the form . . . . 1 hr., 59 min.

columns (b) through (f).

Complete Part IV of Form 8824 only if

Preparing the form . . . . 2 hr., 14 min.

the cost of the replacement property is

Paperwork Reduction Act Notice. We

Copying, assembling,

more than the basis of the divested

ask for the information on this form to

and sending the form

property and you elect to defer the gain.

carry out the Internal Revenue laws of the

to the IRS . . . . . . . . . . 10 min.

Otherwise, report the sale on Schedule D

United States. You are required to give us

or Form 4797, whichever applies.

the information. We need it to ensure that

If you have comments concerning the

Your basis in the replacement property

you are complying with these laws and to

accuracy of these time estimates or

is reduced by the amount of the deferred

allow us to figure and collect the right

suggestions for making this form simpler,

gain. If you made more than one

amount of tax.

we would be happy to hear from you. See

purchase of replacement property, reduce

the instructions for the tax return with

You are not required to provide the

your basis in the replacement property in

which this form is filed.

information requested on a form that is

the order you acquired it.

subject to the Paperwork Reduction Act

Line 30. Enter the amount you received

unless the form displays a valid OMB

from the sale of the divested property,

control number. Books or records relating

minus any selling expenses.

Line 35. Follow these steps to determine

the amount to enter.

-4-

2011 Instructions for Form 8824

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2011 Page 4

Related Articles

Related forms

Related Categories