For U.S. federal income tax purposes, there are exchanges of property that are not taxable, and the gain or loss on the exchange does not have to be recognized. The tax effect is postponed until the subsequent sale or disposal of the exchanged property.
Normally, in a sale or exchange of property, either a taxable gain or a deductible loss is realized. The gain or loss is normally determined as the difference between the total of the money, the fair market value of the property and services you receive, plus any liabilities assumed by the buyer or receiver, or that are attached to the property, and your adjusted basis in the property you sell or transfer.
But there are certain cases in which property can be exchanged and no gain or loss is recognized for federal income tax purposes. One of the most common types of non-taxable exchanges are like-kind exchanges, in which property is exchanged for other property that is similar in kind and use.
You must report trades of like-kind property on Form 8824, Like-Kind Exchanges. If you have a recognized gain or loss on Form 8824, you should report it on either Schedule D or Form 4797, whichever applies. Schedule D would normally be used for personal or investment assets, and Form 4797 would be used for business assets.