U.S. · Tax forms
Form 8824 line 25a, basis of section 1250 property.
Where your line 25 basis is split between like-kind section 1250 property and everything else.
Line 25a (“Basis of like-kind section 1250 property received”) is the part of your line 25 basis that is allocated to the like-kind section 1250 property you received. If everything you received is section 1250 property, the whole line 25 amount goes here. Amounts on lines 25a, 25b and 25c must be proportionate to their fair market values (FMVs).
Look up a line 25 situation
Result
Line 25 and its three parts
| Item | Meaning | What the IRS says |
|---|---|---|
| Line 25 | Total basis in like-kind property received | Subtract line 15 from the sum of lines 18 and 23. The amount on line 25 is your basis in the like-kind property you received. |
| Line 25a | Section 1250 share | Enter the amount from line 25 that is allocated to the like-kind section 1250 property received in the exchange. |
| Line 25b | Sections 1245, 1252, 1254, 1255 share | Enter the amount from line 25 that is allocated to the like-kind section 1245, 1252, 1254, and 1255 property received. |
| Line 25c | Intangible property share | Enter the amount from line 25 that is allocated to the like-kind intangible property received. |
| When to fill them in | Complete the ones that apply | Complete lines 25a, 25b, and 25c, as applicable, if you received like-kind section 1250, 1245, 1252, 1254, or 1255 property, or like-kind intangible property. |
| Allocation rule | Proportionate to FMV | Amounts entered on lines 25a, 25b, and 25c must be proportionate to their FMVs. |
| Non-like-kind property | Not part of line 25 | Your basis in other property (non-like-kind) received in the exchange, if any, is its FMV. |
What line 25a is for
Line 25 gives one number for your basis in all the like-kind property you received. Lines 25a, 25b and 25c break that number into property types: section 1250 property (line 25a), section 1245, 1252, 1254 and 1255 property (line 25b) and intangible property (line 25c). The three amounts are the allocation of line 25, not extra basis on top of it.
Beginning with the 2024 Form 8824, e-filers no longer attach a separate sheet for lines 12a, 15a and 25a through 25c; those lines are on the e-filed form and are completed there.
How the split is made
The instructions require the split to be proportionate to FMV. In the IRS example, one building held both section 1245 and section 1250 like-kind property, so line 25 was divided by the ratio of each category’s FMV to the total FMV of the building. If the property received is all section 1250 property, there is nothing to split and line 25a equals line 25.
Why the property type matters
The Form 4797 instructions describe section 1250 property as depreciable real property other than section 1245 property. The line 21 instructions on Form 8824 use these property types to work out ordinary income under the recapture rules. In the IRS example, Finley’s remaining $5,000 of potential section 1250 depreciation recapture attaches to the building received, so $5,000 of any gain recognized on a later sale of that property is ordinary income.
Worked example
IRS example, Taylor. Taylor subtracts line 15 ($40,000) from the sum of lines 18 ($170,000) and 23 ($40,000) and enters $170,000 on line 25. The building Taylor received is entirely like-kind section 1250 property, so Taylor reports $170,000 on line 25a. IRS example, Finley. Finley’s line 25 is $175,000. The building received had $165,000 of section 1250 FMV and $55,000 of section 1245 FMV (a $220,000 building), so line 25a is $165,000 / $220,000 × $175,000 = $131,250 and line 25b is $55,000 / $220,000 × $175,000 = $43,750. All figures are the IRS’s own examples.
More line pages in this set
Related lines: Form 8824 Line 15, Form 8824 Line 16, Form 8824 Line 18.
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 25a?
The amount from line 25 that is allocated to the like-kind section 1250 property you received in the exchange.
Do I have to fill in line 25a?
Complete lines 25a, 25b and 25c, as applicable, if you received like-kind section 1250, 1245, 1252, 1254 or 1255 property, or like-kind intangible property.
How do I split line 25 between 25a and 25b?
The amounts must be proportionate to their FMVs. In the IRS example, $165,000 of the $220,000 building was section 1250 property, so $131,250 of the $175,000 basis goes on line 25a and $43,750 on line 25b.
What if I received only section 1250 property?
Then the full line 25 amount is allocated to the section 1250 property. In the IRS example, Taylor reports the whole $170,000 on line 25a.
Do e-filers still attach a separate sheet for line 25a?
No. Beginning with the 2024 Form 8824, lines 12a, 15a and 25a through 25c are on the e-filed form and are completed on the form itself.
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.