This chapter discusses the tax consequences of selling or trading investment property. It explains:
- What is a sale or trade,
- When you have a nontaxable trade,
- What to do with a related party transaction,
- Whether the property you sell is a capital asset or a noncapital asset,
- Whether you have a capital or ordinary gain or loss from the sale of property,
- How to determine your holding period, and
- When you can make a tax-free rollover of a gain from selling certain securities.
Sales not discussed in this publication.
Certain sales or trades of property are discussed in other publications.
- Installment sales are covered in Publication 537, Installment Sales .
- Transfers of property at death are covered in Publication 559, Survivors, Executors, and Administrators .
- Transactions involving business property are covered in Publication 544, Sales and Other Dispositions of Assets .
- Dispositions of an interest in a passive activity are covered in Publication 925, Passive Activity and At-Risk Rules .
- Sales of a main home are covered in chapter 16.
Publication 550, Investment Income and Expenses (Including Capital Gains and Losses), provides more detailed discussion about sales and trades of investment property. Publication 550 includes information about the rules covering nonbusiness bad debts, straddles, section 1256 contracts, puts and calls, commodity futures, short sales, and wash sales. It also discusses investment-related expenses.
Publication
- 504 - Divorced or Separated Individuals
- 550 - Investment Income and Expenses
- 564 - Mutual Fund Distributions
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