U.S. · Tax forms

Form 8824 line 16, FMV of the property you received.

The fair market value of the like-kind property that comes in, and where it feeds the gain math.

Line 16 (“FMV of like-kind property you received”) is the fair market value of the like-kind property that came to you in the exchange. It is added to line 15 (cash and other property) on line 17, and line 18 is then subtracted to find the realized gain or loss on line 19.

Instructions for Form 8824, 2025 editionRead November 2, 2026

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Where line 16 sits in lines 15 through 20

ItemMeaningWhat the IRS says
Line 15Boot receivedCash received, FMV of other property received, plus net liabilities assumed by other party, reduced (but not below zero) by any exchange expenses you incurred.
Line 16FMV of like-kind property receivedFMV of like-kind property you received.
Line 17Total receivedAdd lines 15 and 16.
Line 18What you gave upAdjusted basis of like-kind property you gave up, net amounts paid to other party, plus any exchange expenses not used on line 15.
Line 19Realized gain or lossSubtract line 18 from line 17.
Line 20Recognized to this pointEnter the smaller of line 15 or line 19, but not less than zero.

Line 16 in one sentence

The Form 8824 instructions have no separate paragraph for line 16; they explain it through the example for figuring lines 15 through 20, where the line 16 amount is the FMV of the building received. The form wording is “FMV of like-kind property you received,” and the instructions place cash, liabilities and other non-like-kind property on line 15 instead.

Keep line 16 and line 15 apart

Line 15 collects the non-like-kind side of the deal: cash paid to you, the FMV of other (non-like-kind) property you received, and net liabilities assumed by the other party, reduced by your exchange expenses (but not below zero). Line 16 is the like-kind property. Line 17 adds the two so that line 19 can compare everything you received with everything you gave up.

Related lines

Line 18 is the other side of the comparison, and line 25 is where the basis of the like-kind property you received is figured. Lines 25a through 25c then split that basis by property type.

Worked example

IRS example, Taylor. Taylor transfers an apartment building (FMV $220,000, adjusted basis $100,000, $80,000 mortgage) and receives Finley’s apartment building (FMV $250,000, $150,000 mortgage) plus $40,000 cash. Taylor enters $40,000 on line 15, $250,000 on line 16 (the FMV of the building received), $290,000 on line 17, $170,000 on line 18 and a $120,000 realized gain on line 19. IRS example, Finley. Finley enters $30,000 on line 15, $220,000 on line 16, $250,000 on line 17, $175,000 on line 18 and a $75,000 gain on line 19. All figures are the IRS’s own example.

More line pages in this set

Related lines: Form 8824 Line 15, Form 8824 Line 18, Form 8824 Line 25a.

Sources

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.

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Frequently asked questions

What goes on Form 8824 line 16?

The fair market value of the like-kind property you received in the exchange.

Where do cash and liabilities go instead?

On line 15, which includes cash received, the FMV of other (non-like-kind) property received and net liabilities assumed by the other party, reduced by exchange expenses but not below zero.

What does line 17 do with line 16?

Line 17 is the sum of lines 15 and 16, the total you received.

Does line 16 give my basis in the new property?

No. Basis in the like-kind property received is figured on line 25 by subtracting line 15 from the sum of lines 18 and 23.

What was line 16 in the IRS example?

Taylor entered $250,000, the FMV of the apartment building received from Finley, and Finley entered $220,000, the FMV of the building received from Taylor.

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.