Part Three -
Gains and Losses
The four chapters in this part discuss investment gains and losses, including how to figure your basis in property. A gain
from selling or trading stocks, bonds, or other investment property may be taxed or it may be tax free, at least in part.
A loss may or may not be deductible. These chapters also discuss gains from selling property you personally use — including
the special rules for selling your home. Nonbusiness casualty and theft losses are discussed in chapter 25 in Part Five.
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