U.S. · Tax forms
Form 8824 line 15, cash and other property received.
Boot in a like-kind exchange: cash, non-like-kind property and net liabilities, less your exchange expenses.
Line 15 adds up three things you received other than like-kind property: cash paid to you, the FMV of other (non-like-kind) property, and net liabilities assumed by the other party. The total is then reduced (but not below zero) by your exchange expenses. Line 15a describes the other property received.
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Result
What makes up line 15
| Item | Meaning | What the IRS says |
|---|---|---|
| Cash received | Added to line 15 | Any cash paid to you by the other party. |
| Other property | Added to line 15 | The FMV of other (non-like-kind) property you received, if any. |
| Net liabilities assumed | Added to line 15 | The excess, if any, of liabilities (including mortgages) assumed 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 (non-like-kind) property you gave up. |
| Exchange expenses | Reduce the sum | Reduce the sum of the above amounts (but not below zero) by any exchange expenses you incurred. |
| Line 15a | Description | On line 15a, enter a description of the other (non-like-kind) property received. |
| Line 20 link | Limits recognized gain | Enter the smaller of line 15 or line 19, but not less than zero (generally). |
The three additions
Line 15 is the non-like-kind side of the exchange. Cash and the FMV of other property you received are straightforward. The third addition, net liabilities, is a netting: liabilities (including mortgages) the other party assumed, minus liabilities you assumed, minus cash you paid, minus the FMV of other property you gave up. Only a positive excess is added.
Which liabilities count as assumed
The instructions give two rules. A recourse liability is treated as assumed by the party receiving the property if that party has agreed to and is expected to satisfy it, whether or not the party transferring the property has been relieved of it. A nonrecourse liability is generally treated as assumed by the party receiving the property subject to it, with a reduction where an owner of other assets subject to the same liability agrees to and is expected to satisfy part or all of it.
Why line 15 matters
Line 20 generally takes the smaller of line 15 or the realized gain on line 19, so line 15 caps the gain recognized at that point. Line 15 also enters the basis computation on line 25. For the “received” side, line 16 holds the FMV of the like-kind property.
Worked example
IRS example, Taylor. Taylor receives Finley’s building plus $40,000 cash. The $80,000 of liabilities Finley assumed is not counted because it does not exceed the $150,000 Taylor assumed, so Taylor enters $40,000 on line 15 and writes “cash” on line 15a. IRS example, Finley. Finley enters $30,000: the $150,000 of liabilities Taylor assumed, less the sum of the $80,000 Finley assumed and the $40,000 cash Finley paid ($120,000). Finley writes “liabilities and cash” on line 15a. All figures are the IRS’s own example.
More line pages in this set
Related lines: Form 8824 Line 16, Form 8824 Line 18, Form 8824 Line 25a.
Sources
- Instructions for Form 8824 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 8824 (Like-Kind Exchanges): the printed line wording and arithmetic on the form. Read November 2, 2026.
Instructions for Form 8824, 2025 edition. The line labels were read from the Form 8824 (2025) PDF the IRS had posted on the date read. Line numbers can shift between years, so check them against the form for your tax year. Examples marked made-up use invented figures; the others reproduce the IRS’s own examples.
Frequently asked questions
What goes on Form 8824 line 15?
Cash received, the FMV of other (non-like-kind) property received and net liabilities assumed by the other party, reduced (but not below zero) by exchange expenses you incurred.
What are net liabilities assumed by the other party?
The excess, if any, of liabilities (including mortgages) assumed by the other party over the total of liabilities you assumed, cash you paid and the FMV of other property you gave up.
Can exchange expenses make line 15 negative?
No. The sum is reduced by exchange expenses but not below zero. Expenses not used on line 15 are added on line 18.
What do I write on line 15a?
A description of the other (non-like-kind) property received, such as the IRS example entries “cash” and “liabilities and cash.”
Why does line 15 matter for tax?
Line 20 is generally the smaller of line 15 or the realized gain on line 19, so line 15 limits the gain recognized at that point.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.