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Federal input screens

Screen 8824 - Like-Kind Exchanges (1120)

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General Information

State postal code
Use this field to identify the state where this exchange occurred. Some state applications use this information to calculate the state return.
Does not qualify for installment treatment (State use only)
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

note
The gain or loss recognized on non like-kind property used in the exchange does not automatically transfer to the tax return. To report the gain or loss on the non like-kind property, enter the exchange information for those separately on the appropriate screen, based on the correct reporting of the exchange.
Installment obligation received in like-kind exchange
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. 
Fair market value of non Section 1245 like-kind property received
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.
Adjusted basis of like-kind property from pass through entity
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.
Total potential ordinary income under recapture rules
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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