Introduction
You dispose of property when any of the following occurs.
•You sell property.
•You exchange property for other property.
•Your property is condemned or disposed of under threat of condemnation.
•Your property is repossessed.
•You abandon property.
•You give property away.
This . explains the tax rules that apply when you dispose of property. It discusses the following topics.
•How to figure a gain or loss.
•Whether your gain or loss is ordinary or capital.
•How to treat your gain or loss when you dispose of business property.
•How to report a gain or loss.
This . also explains whether your gain is taxable or your loss is deductible.
This . does not discuss certain transactions covered in other IRS .s. These include the following.
•Most transactions involving stocks, bonds, options, forward and futures contracts, and similar investments. See chapter 4 of . 550, Investment Income and Expenses.
•Sale of your main home. See . 523, Selling Your Home.
•Installment sales. See . 537, Installment Sales.
•Transfers of property at death. See . 559, Survivors, Executors, and Administrators.
Forms to file. When you dispose of property, you usually will have to file one or more of the following forms.
•Schedule D, Capital Gains and Losses.
•Form 4797, Sales of Business Property.
•Form 8824, Like-Kind Exchanges.
•Form 8949, Sales and Other Dispositions of Capital Assets.
Although the discussions in this . may at times refer mainly to individuals, many of the rules discussed also apply to taxpayers other than individuals. However, the rules for property held for personal use usually will not apply to taxpayers other than individuals.
1. Gain or Loss
Table of Contents
•Topics - This chapter discusses:
•Useful Items - You may want to see:
•Sales and Exchanges
oGain or Loss From Sales and Exchanges
•Abandonments
•Foreclosures and Repossessions
oAmount realized on a nonrecourse debt.
oAmount realized on a recourse debt.
•Involuntary Conversions
oCondemnations
•Nontaxable Exchanges
oLike-Kind Exchanges
oOther Nontaxable Exchanges
•Transfers to Spouse
•Rollover of Gain From Publicly Traded Securities
•Gains on Sales of Qualified Small Business Stock
•Exclusion of Gain From Sale of DC Zone Assets
•Rollover of Gain From Sale of Empowerment Zone Assets
Topics - This chapter discusses:
•Sales and exchanges
•Abandonments
•Foreclosures and repossessions
•Involuntary conversions
•Nontaxable exchanges
•Transfers to spouse
•Rollovers and exclusions for certain capital gains
You dispose of property when any of the following occurs.
•You sell property.
•You exchange property for other property.
•Your property is condemned or disposed of under threat of condemnation.
•Your property is repossessed.
•You abandon property.
•You give property away.
This . explains the tax rules that apply when you dispose of property. It discusses the following topics.
•How to figure a gain or loss.
•Whether your gain or loss is ordinary or capital.
•How to treat your gain or loss when you dispose of business property.
•How to report a gain or loss.
This . also explains whether your gain is taxable or your loss is deductible.
This . does not discuss certain transactions covered in other IRS .s. These include the following.
•Most transactions involving stocks, bonds, options, forward and futures contracts, and similar investments. See chapter 4 of . 550, Investment Income and Expenses.
•Sale of your main home. See . 523, Selling Your Home.
•Installment sales. See . 537, Installment Sales.
•Transfers of property at death. See . 559, Survivors, Executors, and Administrators.
Forms to file. When you dispose of property, you usually will have to file one or more of the following forms.
•Schedule D, Capital Gains and Losses.
•Form 4797, Sales of Business Property.
•Form 8824, Like-Kind Exchanges.
•Form 8949, Sales and Other Dispositions of Capital Assets.
Although the discussions in this . may at times refer mainly to individuals, many of the rules discussed also apply to taxpayers other than individuals. However, the rules for property held for personal use usually will not apply to taxpayers other than individuals.
1. Gain or Loss
Table of Contents
•Topics - This chapter discusses:
•Useful Items - You may want to see:
•Sales and Exchanges
oGain or Loss From Sales and Exchanges
•Abandonments
•Foreclosures and Repossessions
oAmount realized on a nonrecourse debt.
oAmount realized on a recourse debt.
•Involuntary Conversions
oCondemnations
•Nontaxable Exchanges
oLike-Kind Exchanges
oOther Nontaxable Exchanges
•Transfers to Spouse
•Rollover of Gain From Publicly Traded Securities
•Gains on Sales of Qualified Small Business Stock
•Exclusion of Gain From Sale of DC Zone Assets
•Rollover of Gain From Sale of Empowerment Zone Assets
Topics - This chapter discusses:
•Sales and exchanges
•Abandonments
•Foreclosures and repossessions
•Involuntary conversions
•Nontaxable exchanges
•Transfers to spouse
•Rollovers and exclusions for certain capital gains
