Publication 550 |
2000 Tax Year |
Introduction
This chapter explains the tax treatment of sales and trades of
investment property.
Investment property.
This is property that produces investment income. Examples include
stocks, bonds, and Treasury bills and notes. Property used in a trade
or business is not investment property.
Form 1099-B.
If you sold property such as stocks, bonds, or certain commodities
through a broker during the year, you should receive, for each sale, a
Form 1099-B, Proceeds From Broker and Barter Exchange
Transactions, or an equivalent statement from the broker. You
should receive the statement by January 31 of the next year. It will
show the gross proceeds from the sale. The IRS will also get a copy of
Form 1099-B from the broker.
Use Form 1099-B (or an equivalent statement received from
your broker) to complete Schedule D of Form 1040. For more
information, see Form 1099-B transactions under
Reporting Capital Gains and Losses, later.
Other property transactions.
Certain transfers of property are discussed in other IRS
publications. These include:
- Sale of your main home, discussed in Publication 523,
Selling Your Home,
- Installment sales, covered in Publication 537,
Installment Sales,
- Various types of transactions involving business property,
discussed in Publication 544,
Sales and Other Dispositions of
Assets,
- Transfers of property at death, covered in Publication 559,
Survivors, Executors, and Administrators, and
- Disposition of an interest in a passive activity, discussed
in Publication 925,
Passive Activity and At-Risk
Rules.
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