OMB No. 1545-1190 Like-Kind Exchanges

Form 8824

(and nonrecognition of gain from conflict-of-interest sales)

Department of the Treasury

Internal Revenue Service  Attach to your tax return. Attachment

Sequence No. 109

Name(s) shown on tax return Identifying number

Information on the Like-Kind Exchange

1 Description of like-kind property given up 

2 Description of like-kind property received 

3 Date like-kind property given up was originally acquired (month, day, year) 3 / /

4 Date you actually transferred your property to other party (month, day, year) 4 / /

5 Date like-kind property you received was identified (month, day, year). See instructions 5 / /

6 Date you actually received the like-kind property from other party (month, day, year) 6 / /

7 Was the exchange made with a related party? If “Yes,” complete Part II. If “No,” go to Part III. See instructions.

Yes, in this tax year No

8 Name of related party Related party’s identifying number

Address (no., street, and apt., room, or suite no.)

City or town, state, and ZIP code Relationship to you

During this tax year (and before the date that is 2 years after the last transfer of property that was part of the

exchange), did the related party sell or dispose of the like-kind property received from you in the exchange?

9

During this tax year (and before the date that is 2 years after the last transfer of property that was part of the

exchange), did you sell or dispose of the like-kind property you received?

10

If both lines 9 and 10 are “No” and this is the year of the exchange, go to Part III. If both lines 9 and 10 are “No” and this is not the

year of the exchange, stop here. If either line 9 or line 10 is “Yes,” complete Part III and report on this year’s tax return the deferred

gain or (loss) from line 24 unless one of the exceptions on line 11 applies. See Related party exchanges in the instructions.

11 If one of the exceptions below applies to the disposition, check the applicable box:

The disposition was after the death of either of the related parties.

The disposition was an involuntary conversion, and the threat of conversion occurred after the exchange.

You can establish to the satisfaction of the IRS that neither the exchange nor the disposition had tax avoidance as

its principal purpose. If this box is checked, attach an explanation. See instructions.

Caution: If you transferred and received (a) more than one group of like-kind properties, or (b) cash or other (not like-kind)

property, see Reporting of multi-asset exchanges in the instructions.

Note: Complete lines 12 through 14 only if you gave up property that was not like-kind. Otherwise, go to line 15.

12 Fair market value (FMV) of other property given up 12

13 Adjusted basis of other property given up 13

Gain or (loss) recognized on other property given up. Subtract line 13 from line 12. Report the

gain or (loss) in the same manner as if the exchange had been a sale

14

14

15 Cash received, FMV of other property received, plus net liabilities assumed by other party, reduced

(but not below zero) by any exchange expenses you incurred. See instructions 15

16 FMV of like-kind property you received 16

17 Add lines 15 and 16 17

Adjusted basis of like-kind property you gave up, net amounts paid to other party, plus any

exchange expenses not used on line 15. See instructions

18

18

19 Realized gain or (loss). Subtract line 18 from line 17 19

20 Enter the smaller of line 15 or line 19, but not less than zero 20

21 Ordinary income under recapture rules. Enter here and on Form 4797, line 16. See instructions 21

Basis of like-kind property received. Subtract line 15 from the sum of lines 18 and 23

22

22

For Paperwork Reduction Act Notice, see back of form. Cat. No. 12311A Form 8824 (2000)

Part I

Yes No

Yes No

Realized Gain or (Loss), Recognized Gain, and Basis of Like-Kind Property Received

Note: If the property described on line 1 or line 2 is real or personal property located outside the United States, indicate the country.

a b c Yes, in a prior tax year

23

24 Deferred gain or (loss). Subtract line 23 from line 19. If a related party exchange, see instructions

Subtract line 21 from line 20. If zero or less, enter -0-. If more than zero, enter here and on Schedule

D or Form 4797, unless the installment method applies. See instructions

Recognized gain. Add lines 21 and 22

25

23

24

25

a

b

c

Part III

Part II Related Party Exchange Information

2000
Form 8824 (2000) Page 2

Section 1043 Conflict-of-Interest Sales. See instructions. Attach a copy of your certificate of divestiture.

Description of divested property 

Description of replacement property 

Date divested property was sold (month, day, year) 28 / /

Sales price of divested property. See instructions 29

26

30

27

Basis of divested property

Realized gain. Subtract line 30 from line 29 31

28

32

29

Cost of replacement property purchased within 60 days after date

of sale

Recognized gain. Add lines 34 and 35

30

33

34

31

Ordinary income under recapture rules. Enter here and on Form 4797, line 10. See instructions

Basis of replacement property. Subtract line 37 from line 32

32

35

Note: This part is to be used only by officers or employees of the executive branch of the Federal Government for reporting

nonrecognition of gain under section 1043 on the sale of property to comply with the conflict-of-interest requirements. This

part can be used only if the cost of the replacement property exceeds the basis of the divested property.

Name(s) shown on tax return. Do not enter name and social security number if shown on other side. Your social security number

33

34

35

36

37

38

Subtract line 32 from line 29. If zero or less, enter -0-

Subtract line 34 from line 33. If zero or less, enter -0-. If more than zero, enter here and on

Schedule D or Form 4797. See instructions

Deferred gain. Subtract line 36 from line 31

36

37

38

Part IV

Paperwork Reduction Act Notice.

We ask for the information on this

form to carry out the Internal

Revenue laws of the United States.

You are required to give us the

information. We need it to ensure

that you are complying with these

laws and to allow us to figure and

collect the right amount of tax.

You are not required to provide the

information requested on a form that

is subject to the Paperwork

Reduction Act unless the form

The time needed to complete and

file this form will vary depending on

individual circumstances. The

If you have comments concerning

the accuracy of these time

estimates or suggestions for making

this form simpler, we would be

happy to hear from you. See the

instructions for the tax return with

which this form is filed.

Form 8824 (2000)

displays a valid OMB control

number. Books or records relating to

a form or its instructions must be

retained as long as their contents

may become material in the

administration of any Internal

Revenue law. Generally, tax returns

and return information are

confidential, as required by Internal

Revenue Code section 6103.

estimated average time is:

Recordkeeping, 1 hr., 38 min.;

Learning about the law or the

form, 25 min.; Preparing the form,

59 min.; Copying, assembling, and

sending the form to the IRS,

33 min.
Form 8824 (2000) Page 3

Deferred exchanges. A deferred exchange

occurs when the property received in the

exchange is not received at the same time

as the transfer of the property given up.

For a deferred exchange to qualify as

like-kind, you must:

● Identify the replacement property you

receive no later than 45 days after the date

you transferred the property given up, and

● Receive the new property by the earlier

of (a) 180 days after the date you

transferred the property given up or

(b) the due date (including extensions) of

your tax return for the year in which you

transferred the property given up.

You identify replacement property by

notifying, in writing, another party to the

exchange (other than a related party) of

your selection of the property.

Identification may also be made in a

written agreement for the exchange of

properties.

Multi-asset exchanges. A multi-asset

exchange involves the transfer and receipt

of more than one group of like-kind

properties. For example, an exchange of

land, vehicles, and cash for land and

vehicles is a multi-asset exchange. An

exchange of land, vehicles, and cash for

land only is not a multi-asset exchange.

The transfer or receipt of multiple

properties within one like-kind group is

also a multi-asset exchange.

Reporting of multi-asset exchanges. If

you transferred and received (a) more than

one group of like-kind properties or (b)

cash or other (not like-kind) property, do

not complete lines 12 through 18 of Form

8824. Instead, attach your own statement

showing how you figured the realized and

recognized gain, and enter the correct

amount on lines 19 through 25. Report any

recognized gains on Schedule D, Form

4797, Sales of Business Property, or

Form 6252, Installment Sale Income,

whichever applies.

If you are filing this form for 1 of the 2

years following the year of the exchange,

complete Parts I and II. If both lines 9 and

10 are “No,” stop. If either line 9 or line 10

is “Yes” and an exception on line 11

applies, check the applicable box on line

11 and stop. If no line 11 exceptions

apply, complete Part III. Report the

deferred gain or (loss) from line 24 on this

year’s tax return as if the exchange had

been a sale.

An exchange structured to avoid related

party rules is not a like-kind exchange.

See section 1031(f)(4).

Lines 1 and 2. For real property, enter the

address and type of property. For personal

property, enter a short description. For

property located outside the United States,

include the country.

Line 5. See Deferred exchanges on this

page.

Line 7. See Related party exchanges on

this page.

Line 11c. If you believe that you can

establish to the satisfaction of the IRS that

tax avoidance was not a principal purpose

of both the exchange and the disposition,

attach an explanation. See Pub. 537,

Installment Sales, for exceptions where tax

avoidance is not a principal purpose.

Lines 12, 13, and 14. If you gave up other

property in addition to the like-kind

property, enter the fair market value (FMV)

and the adjusted basis of the other

property on lines 12 and 13, respectively.

Line 15. Include on line 15 the sum of the

following:

● Any cash paid to you by the other party,

Special rules apply when figuring the

amount of gain recognized and your basis

in properties received in a multi-asset

exchange. For details, see Regulations

section 1.1031(j)-1.

If either you or the related party

disposes of property received in an

exchange before the date that is 2 years

after the last transfer of property from the

exchange, the deferred gain or (loss) from

line 24 must be reported on your return for

the year of disposition (unless an exception

on line 11 applies).

Specific Instructions

The gain or (loss) from this property is

figured on line 14 and must be reported on

your return. Report gain or (loss) as if the

exchange were a sale.

● The FMV of other (not like-kind) property

you received, if any, and

Section references are to the Internal

Revenue Code unless otherwise noted.

General Instructions

Purpose of Form

Use Parts I, II, and III of Form 8824 to

report the exchange of business or

investment property for property of a like

kind (section 1031). Use Part IV to report

the nonrecognition of gain from

conflict-of-interest sales by certain

members of the executive branch of the

Federal Government (section 1043).

If during the current tax year you

transferred property to another party in a

like-kind exchange, you must file Form

8824. Also file Form 8824 for the 2 years

following the year of a related party

exchange (see Related party exchanges

on this page).

Like-Kind Exchanges

Generally, if you exchange business or

investment property solely for business or

investment property of a like kind, no gain

or loss is recognized under section 1031.

If, as part of the exchange, you also

receive other (not like-kind) property or

money, gain is recognized to the extent of

the other property and money received,

but a loss is not recognized.

Section 1031 does not apply to

exchanges of inventory, stocks, bonds,

notes, other securities or evidence of

indebtedness, or certain other assets. See

section 1031(a)(2).

Like-kind property. Properties are of like

kind if they are of the same nature or

character, even if they differ in grade or

quality. Personal properties of a like class

are like-kind properties. However, livestock

of different sexes are not like-kind

properties. Also, personal property used

predominantly in the United States and

personal property used predominantly

outside the United States are not like-kind

properties. See Pub. 544 for more details.

For more information on like-kind

exchanges, see section 1031 and its

regulations and Pub. 544, Sales and Other

Dispositions of Assets.

Multiple exchanges. If you made more

than one like-kind exchange, you may

report each exchange on a separate Form

8824. Or, you may file only one summary

Form 8824 and attach your own statement

showing all the information requested on

Form 8824 for each exchange. Include

your name and identifying number at the

top of each page of the statement. On the

summary Form 8824, enter only your name

and identifying number, “Summary” on line

1, the total recognized gain from all

exchanges on line 23, and the total basis

of all like-kind property received on line 25.

Real properties generally are of like kind,

regardless of whether the properties are

improved or unimproved. However, real

property in the United States and real

property outside the United States are not

like-kind properties.

When To File

Related party exchanges. Special rules

apply to like-kind exchanges made with

related parties. A related party includes

your spouse, child, grandchild, parent,

brother, or sister; or a related corporation,

S corporation, partnership, or trust. See

section 1031(f).

● Net liabilities assumed by the other

party—the excess, if any, of liabilities

(including mortgages) assumed (see

page 4) by the other party over the total

of (a) any liabilities you assumed, (b) cash

you paid to the other party, and (c) the

FMV of the other (not like-kind) property

you gave up.

See Rev. Proc. 2000-37, 2000-40 I.R.B.

308, for special rules that apply to property

held in a qualified exchange

accommodation arrangement (QEAA).
Form 8824 (2000) Page 4

● The rules for section 1252, 1254, and

1255 property are similar to those for

section 1245 property. See Regulations

section 1.1252-2(d) and Temporary

Regulations section 16A.1255-2(c) for

details. If the installment method applies to

this exchange:

1. See section 453(f)(6) to determine the

installment sale income taxable for this

year and report it on Form 6252.

2. Enter on Form 6252, line 25 or 36, the

section 1252, 1254, or 1255 recapture

amount you figured on Form 8824, line 21.

Do not enter more than the amount shown

on Form 6252, line 24 or 35.

4. If all the ordinary income is not

recaptured this year, report in future years

on Form 6252 the ordinary income up to

the taxable installment sale income, until it

is all reported.

Line 22. Report a gain from the exchange

of property used in a trade or business

(and other noncapital assets) on Form

4797, line 5 or 16. Report a gain from the

exchange of capital assets according to

the Schedule D instructions for your return.

Be sure to use the date of the exchange

as the date for reporting the gain. If the

installment method applies to this

exchange, see section 453(f)(6) to

Line 24. If line 19 is a loss, enter it on line

24. Otherwise, subtract the amount on line

23 from the amount on line 19 and enter

the result. For exchanges with related

parties, see Related party exchanges on

page 3.

Line 25. The amount on line 25 is your

basis in the like-kind property you received

in the exchange. Your basis in other

property received in the exchange, if any,

is its FMV.

If you sell property at a gain according to a

certificate of divestiture issued by the

Office of Government Ethics (OGE), you

may elect to recognize gain on the sale

only to the extent that the amount realized

on the sale exceeds the cost of

replacement property (permitted property)

purchased within 60 days after the sale.

Permitted property is any obligation of the

United States or any diversified investment

fund approved by the OGE.

Complete Part IV of Form 8824 only if

the cost of the replacement property

exceeds the basis of the divested property.

Otherwise, report the gain on Schedule D

or Form 4797, whichever applies.

Line 29. Enter the amount you received

from the sale of the divested property,

minus any selling expenses.

Line 34. Follow these steps to determine

the amount to enter.

2. Enter on Form 8824, line 34, the

amount from Form 4797, line 31. Do not

attach the Form 4797 used as a worksheet

to your return.

Line 35. If you sold a capital asset, enter

any gain from line 35 on Schedule D. If you

sold property used in a trade or business

(or any other noncapital asset), report the

gain on Form 4797, line 2 or 10, column

(g). In column (a), write “From Form 8824,

line 35.” Do not complete columns (b)

through (f).

3. Also, enter this amount on Form 4797,

line 15.

Section 1043

Conflict-of-Interest Sales

(Part IV)

1. Use Part III of Form 4797 as a

worksheet to figure ordinary income under

the recapture rules.

3. Report the amount from line 34 on

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

(a), write “From Form 8824, line 34.” Do

not complete columns (b) through (f).

Your basis in the replacement property

is reduced by the amount of the gain not

recognized. If you made more than one

purchase of replacement property, reduce

your basis in the replacement property in

the order it was acquired.

Line 18. Include on line 18 the sum of the

following:

● Net amount paid to the other party—the

excess, if any, of the total of (a) any

liabilities you assumed, (b) cash you paid

to the other party, and (c) the FMV of the

other (not like-kind) property you gave up

over any liabilities assumed by the other

party.

See Regulations section 1.1031(d)-2 and

the following example for figuring amounts

to enter on lines 15 and 18.

Example. A owns an apartment house

with an FMV of $220,000, an adjusted

basis of $100,000, and subject to a

mortgage of $80,000. B owns an

apartment house with an FMV of $250,000,

an adjusted basis of $175,000, and subject

to a mortgage of $150,000.

B enters $30,000 on line 15—the excess

of the $150,000 of liabilities assumed by A

over the total ($120,000) of the $80,000 of

liabilities B assumed and the $40,000 cash

B paid. B enters on line 18 only the

adjusted basis of $175,000 because the

total of the $80,000 of liabilities B assumed

and the $40,000 cash B paid does not

exceed the $150,000 of liabilities assumed

by A.

Line 21. If you disposed of section 1245,

1250, 1252, 1254, or 1255 property (see

the instructions for Part III of Form 4797),

you may be required to recapture as

ordinary income part or all of the realized

gain (line 19). Figure the amount to enter

on line 21 as follows:

● For section 1245 property, enter the

smaller of (a) the total adjustments for

deductions (whether for the same or other

property) allowed or allowable to you or

any other person for depreciation or

amortization (up to the amount of the gain

shown on line 19) or (b) any gain shown

on line 20 plus the FMV of non-section

1245 like-kind property acquired.

● For section 1250 property, enter the

larger of (a) the excess, if any, of the gain

you would have had to report as ordinary

income because of additional depreciation

(see the Form 4797 instructions for line 26)

if you had sold the property over the FMV

of the section 1250 property acquired or

(b) any gain shown on line 20.

● The adjusted basis of the like-kind

property you gave up,

● Exchange expenses, if any (except for

expenses used to reduce the amount

reported on line 15), and

A transfers his apartment house to B

and receives in exchange B’s apartment

house plus $40,000 cash. A assumes the

mortgage on the apartment house received

from B, and B assumes the mortgage on

the apartment house received from A.

A enters on line 15 only the $40,000

cash received from B. The $80,000 of

liabilities assumed by B is not included

because it does not exceed the $150,000

of liabilities A assumed. A enters $170,000

on line 18—the $100,000 adjusted basis,

plus the $70,000 excess of the liabilities A

assumed over the liabilities assumed by B

($150,000 - $80,000).

● A nonrecourse liability generally is

treated as assumed by the party receiving

the property subject to the liability.

However, if an owner of other assets

subject to the same liability agrees with the

party receiving the property to, and is

expected to, satisfy part or all of the

liability, the amount treated as assumed is

reduced by the smaller of (a) the amount

of the liability that the owner of the other

assets has agreed to and is expected to

satisfy or (b) the FMV of those other

assets.

Reduce the sum of the above amounts

(but not below zero) by any exchange

expenses you incurred. See the example

below.

The following rules apply in determining

the amount of liability treated as assumed.

● A recourse liability (or portion thereof) is

treated as assumed by the party receiving

the property if that party has agreed to and

is expected to satisfy the liability (or

portion thereof). It does not matter whether

the party transferring the property has

been relieved of the liability.

determine the installment sale income

taxable for this year and report it on Form

6252.