1040 U.S. Individual Income Tax Return

Caution: DRAFT FORM
This is an advance proof copy of an IRS tax form.
It is subject to change and OMB approval before it
is officially released. You can check the scheduled
release date on our web site (www.irs.gov).
If you have any comments on this draft form, you can
submit them to us on our web site. Include the word
DRAFT in your response. You may make comments
anonymously, or you may include your name and
e-mail address or phone number. We will be unable
to respond to all comments due to the high volume
we receive. However, we will carefully consider
each suggestion. So that we can properly consider
your comments, please send them to us within 30
days from the date the draft was posted.

1
TLS, have you
transmitted all R
text files for this
cycle update?

Date

I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8824, PAGE 1 of 6.
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") 3 279 mm (11")
PERFORATE: (NONE)

8824

Department of the Treasury
Internal Revenue Service

Name(s) shown on tax return

Part I

Date

Signature

O.K. to print

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Action

Revised proofs
requested

OMB No. 1545-1190

Like-Kind Exchanges

2006

(and section 1043 conflict-of-interest sales)

f
o
s
a
6
t
0
f
0
a
2
r
/
D /21
7
0
©

Attachment
Sequence No.

Attach to your tax return.

109

Identifying number

Information on the Like-Kind Exchange

1

Note: If the property described on line 1 or line 2 is real or personal property located outside the United States, indicate the country.
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 by written notice to another party (month,
day, year). See instructions for 45-day written notice requirement

5

/

/

6

Date you actually received the like-kind property from other party (month, day, year). See instructions

6

/

/

7

Was the exchange of the property given up or received made with a related party, either directly or indirectly
(such as through an intermediary)? See instructions. If “Yes,” complete Part II. If “No,” go to Part III

Part II
8

©

Yes

No

Related Party Exchange Information

Name of related party

Relationship to you

Related party’s identifying number

Address (no., street, and apt., room, or suite no., city or town, state, and ZIP code)

9

10

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 directly or indirectly (such as through an intermediary) sell or dispose of any
part of the like-kind property received from you in the exchange?

Yes

No

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 any part of the like-kind property you received?

Yes

No

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.

11

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

a

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

b

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

c

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).

For Paperwork Reduction Act Notice, see page 5.

Cat. No. 12311A

Form

8824

(2006)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTER
FORM 8824, PAGE 2 of 6
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") 3 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8824 (2006)

Page

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

Part III

2

Your social security number

f
o
s
a
6
t
0
f
0
a
2
r
/
D /21
7
0

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

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.
12
13
14

15
16
17
18
19
20
21
22
23
24
25

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
13
Adjusted basis of other property given up
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
Caution: If the property given up was used previously or partly as a home, see Property used
as home in the instructions.
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)
FMV of like-kind property you received
Add lines 15 and 16
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)
Realized gain or (loss). Subtract line 18 from line 17
Enter the smaller of line 15 or line 19, but not less than zero
Ordinary income under recapture rules. Enter here and on Form 4797, line 16 (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
Deferred gain or (loss). Subtract line 23 from line 19. If a related party exchange, see instructions
Basis of like-kind property received. Subtract line 15 from the sum of lines 18 and 23

Part IV

14

15
16
17
18
19
20
21
22
23
24
25

Deferral of Gain From Section 1043 Conflict-of-Interest Sales

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 is more than the basis of the divested property.
26

Enter the number from the upper right corner of your certificate of divestiture. (Do not attach a
©
copy of your certificate. Keep the certificate with your records.)

–

©

27

Description of divested property

28

Description of replacement property

29

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

30

Sales price of divested property (see instructions)

30

31

Basis of divested property

31

32

Realized gain. Subtract line 31 from line 30

33

Cost of replacement property purchased within 60 days after date
of sale

34

Subtract line 33 from line 30. If zero or less, enter -0-

34

35
36

Ordinary income under recapture rules. Enter here and on Form 4797, line 10 (see instructions)
Subtract line 35 from line 34. If zero or less, enter -0-. If more than zero, enter here and on
Schedule D or Form 4797 (see instructions)

35

37

Deferred gain. Subtract the sum of lines 35 and 36 from line 32

37

38

Basis of replacement property. Subtract line 37 from line 33

38

©

29

/

/

32
33

36

Form

8824

(2006)