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Federal input screens

Screen 8824 - Like-Kind Exchanges (1120)

General Information

Use this field to identify the state where this exchange occurred. Some state applications use this information to calculate the state return.
Enter
X
 if an installment obligation was received in the like-kind exchange, either PA or WI is entered in the
State postal code
 field, and the exchange does not qualify for installment treatment.

Computation of Gain and Basis

Enter the amount of installment obligation received in the like-kind exchange if at least one payment on the note is going to be received after the close of the tax year that the disposition occurs. 
Enter the fair market value of any non section 1245 property received in the exchange, if you disposed of section 1245 property. The application calculates the ordinary income under recapture rules by taking the smaller of the amount entered in the
Total potential ordinary income under recapture rules
 field in Screen 8824, up to the amount of realized gain, or the gain shown on Form 8824, line 20 plus the fair market value of non section 1245 like-kind property received.
Enter the cost, depreciation allowed or allowable excluding section 179, and the section 179 expense deduction passed through from a partnership to the C or S Corporation partner. Enter the amount of section 179 carryover for this asset, if any. These fields are only available in the Schedule K1, 1065/1041 folder.
If the exchange is reported in the K1 1065, 1041 folder, the total potential ordinary income is calculated under recapture rules for a C Corporation as
Depreciation allowed or allowable excluding section 179
, plus the
Section 179 expense deduction passed through
 amount, less the
Section 179 carryover
 amount.
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