Publication 550: Investment Income and Expenses; Index

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Abusive tax shelters (see Tax shelters)

Accounting fees, Attorney or accounting fees.

Accrual method, Accrual method taxpayers., Accrual method., Holders must use accrual method., When To Deduct Investment Interest, Glossary

Accuracy-related penalty, Accuracy-related penalty.

Acquisition discount, Government obligations., Acquisition discount on short-term obligations.

Adjusted basis, Basis adjustment., Fair market value equal to or more than donor's adjusted basis., Adjusted Basis, Short sales.

Alaska Permanent Fund dividends, Alaska Permanent Fund dividends., Child's Alaska Permanent Fund dividends.

Amortization of bond premium, Bond Premium Amortization, Bonds acquired after October 22, 1986, but before 1988.

Annuities:

Borrowing on, Borrowing on insurance.
Interest on, Interest on annuity contract.
Life insurance proceeds used to buy, Annuity.
Sale of, Sale of Annuity
Single-premium, Single-premium life insurance, endowment, and annuity contracts.
Trade for, Trade of investment property for an annuity., Insurance Policies and Annuities

Applicable federal rate, Applicable federal rate.

Appreciated financial positions, Constructive Sales of Appreciated Financial Positions

Arbitrage bonds, Arbitrage bonds.

Assistance (see Tax help)

At-risk rules, At-risk rules., At-risk rules., Glossary

Attorneys' fees, Attorney or accounting fees.

Automatic investment service, Automatic investment service and dividend reinvestment plans., Automatic investment service., Automatic investment service.

Backup withholding, Backup withholding.

Bad debts, Nonbusiness bad debt. , Nonbusiness Bad Debts

Bankrupt financial institutions:

Deposit in, Deposit in Insolvent or Bankrupt Financial Institution

Bargain purchases, Bargain purchases.

Basis, Basis of Investment Property, U.S. Treasury Notes or Bonds, Glossary

Basis:

Adjusted, Basis adjustment., Fair market value equal to or more than donor's adjusted basis., Adjusted Basis, Short sales.
Cost, Cost Basis
Inherited property, Property Received as Inheritance
Investment property, Basis of Investment Property
Like-kind exchanges, Basis of property received.
Other than cost, Basis Other Than Cost
REITs, Shares in a mutual fund or REIT.
REMIC, residual interest, Basis in the residual interest.
Replacement stock, Basis of replacement stock.
Stocks and bonds, Basis adjustment., Basis., Basis., Stocks and Bonds

Bearer obligations, Bearer CDs., Bearer Obligations

Below-market loans, Below-Market Loans, Effective dates., Glossary

Bonds

U.S. savings (see U.S. savings bonds)
U.S. Treasury (see U.S. Treasury bills, notes, and bonds)

Bonds:

Accrued interest on, Accrued interest on bonds.
Amortization of premium, Bond Premium Amortization
Arbitrage, Arbitrage bonds.
Basis, Basis., Stocks and Bonds
Capital asset, Stocks, stock rights, and bonds.
Convertible, Convertible stocks and bonds.
Coupon, Coupon bonds.
Enterprise zone facility, Enterprise zone facility bonds.
Federally guaranteed, Federally guaranteed bonds.
Identification, Identifying stock or bonds sold.
Market discount, Market discount., Limit on interest deduction for market discount bonds., Market discount on bonds., Market discount bonds., Market discount bonds., Glossary
New York Liberty bonds, New York Liberty bonds.
Premiums on, Bond premium., Premiums on bonds., Glossary
Private activity, Arbitrage bonds., Glossary
Redemption or retirement of, Redemption or retirement of bonds.
Sold between interest dates, Bonds Sold Between Interest Dates
State and local government, Tax-exempt state and local government bonds.
Stripped, Stripped bonds or coupons., Stripped Bonds and Coupons, Stripped tax-exempt obligation.
Tax-exempt, Tax-exempt state and local government bonds.
Traded flat, Bonds traded flat.

Brokerage fees, Fees to buy or sell., Sale expenses.

Calls and puts, Calls and Puts, Glossary

Calls and puts:

Table 4-1, Table 4-1. Puts and Calls

Capital assets, Capital Assets and Noncapital Assets

Capital gain distributions, Capital Gain Distributions, Basis adjustment., Capital gain distributions., Child's capital gain distributions., Capital gain distributions received.

Capital gain tax computation, Comprehensive Example

Capital gains and losses, Capital Gains and Losses, Loss on stock that paid qualified dividends.

Capital gains and losses:

Constructive ownership transactions, Gains From Certain Constructive Ownership Transactions

Definition, Capital or Ordinary Gain or Loss

Empowerment zone assets, Rollover of Gain From Sale of Empowerment Zone Assets

Investment property, Investment property.

Long-term, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses.

Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument).

Losses, limit on, Limit on deduction.

Passive activities, Passive activity gains and losses.

Qualified covered call options, Capital loss on qualified covered call options.

Qualified small business stock, Gains on Qualified Small Business Stock

Reporting requirements, How To Report Gains and Losses (Form 6781), How to report gain., Reporting Capital Gains and Losses

Rollover of gain from sale of securities, Rollover of Gain From Publicly Traded Securities

Short-term, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses.

Tax rates, Capital Gain Tax Rates

Tax rates:

28% rate gain worksheet, completed sample,
Table 4-2,

Capital loss carryover, Capital loss carryover., Capital Losses, Capital loss carryover from 2003.

Capital loss carryover:

Worksheet 4-1,

Cash method, Cash method taxpayers., Cash method., When To Deduct Investment Interest, Glossary

Cash method:

Reporting options for savings bond interest, Reporting options for cash method taxpayers.

Cash-settled options, Cash-settled options.

Casualty losses, Ordinary loss or casualty loss.

CDOs (Collateralized debt obligations), Collateralized Debt Obligations (CDOs)

Certificates of deposit (CDs), Certificates of Deposit (CDs)

Children:

Alaska Permanent Fund dividends, Child's Alaska Permanent Fund dividends.
Capital gain distributions, Child's capital gain distributions.
Custodian account for, Custodian account for your child.
Gifts to, Income from property given to a child.
Investment income of, Tax on investment income of a child under age 14., Investment income of child reported on parent's return.
Qualified dividends, Child's qualified dividends.
Savings account with parent as trustee, Savings account with parent as trustee.
U.S. savings bond owner, Child as only owner.

Clerical help, Clerical help and office rent.

Co-owners of U.S. savings bonds, Co-owners.

Collateralized debt obligations (CDOs), Collateralized Debt Obligations (CDOs)

Comments on publication, Comments and suggestions.

Commodities traders, Glossary

Commodity futures, Commodity Futures, Commodity futures., Glossary

Community property:

U.S. savings bonds, Community property.

Constructive ownership transactions, Constructive ownership of stock., Gains From Certain Constructive Ownership Transactions

Constructive receipt, Constructive receipt.

Constructive sales, Constructive Sales of Appreciated Financial Positions

Contractors, insolvency of, Insolvency of contractor.

Conversion transactions, Conversion Transactions, Glossary

Convertible stocks and bonds, Convertible stocks and bonds.

Cooperatives, sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives

Corporate distributions, Dividends and Other Corporate Distributions

Dividends (see Dividends)

Corporate distributions:

Capital gain, Capital gain distributions., Child's capital gain distributions., Capital gain distributions received.
Constructive, Constructive distributions.
Fractional shares, Fractional shares.
Liquidating, Liquidating Distributions, Liquidating distributions.
Nondividend, Nondividend Distributions, Nondividend distributions.
Return of capital, Basis adjustment.
Stock rights, Distributions of Stock and Stock Rights
Undistributed capital gains, Undistributed capital gains of mutual funds and REITs.

Corporate reorganizations, Corporate reorganizations.

Cost basis, Cost Basis

Coupon bonds, Coupon bonds.

Day traders, Special Rules for Traders in Securities

Dealer equity options, Dealer equity option.

Dealer securities futures contracts, Dealer securities futures contract.

Debt instruments, retirement of, Retirement of debt instrument.

Decedents, Appreciated property you gave the decedent., Decedent's capital loss.

Decedents:

U.S. savings bond interest, reporting of, Decedents.

Demand loans, Glossary

Demutualization, Demutualization of Life Insurance Companies

Deposits, loss on, Deposit in Insolvent or Bankrupt Financial Institution

Discount on debt instruments, Discount on Debt Instruments, Election To Report All Interest as OID

Market discount bonds (see Market discount bonds)
Original issue discount (see Original issue discount (OID))

Discount on debt instruments:

Certificates of deposit, Certificates of Deposit (CDs)
Election to report all interest as OID, Election To Report All Interest as OID
Face-amount certificates, Face-Amount Certificates
Gain or loss treatment, Discounted Debt Instruments
Inflation-indexed, Inflation-Indexed Debt Instruments
Short-term obligations, Discount on Short-Term Obligations, Short-term government obligations.
Stripped bonds and coupons, Stripped Bonds and Coupons

Discounted debt instruments, Discount on Debt Instruments

Discounted tax-exempt obligations, Discounted tax-exempt obligations.

Dividends, Dividends and Other Corporate Distributions, Liquidating distributions., Glossary

Dividends:, Form 1099-DIV.

(see also Form 1099-DIV)
Alaska Permanent Fund, Alaska Permanent Fund dividends., Child's Alaska Permanent Fund dividends.
Exempt-interest, Exempt-interest dividends., Exempt-interest dividends., Exempt-interest dividends on mutual fund stock.
Extraordinary, Extraordinary dividends.
Holding period, Holding period.
Insurance policies, Dividends on insurance policies.
Money market funds, Money Market Funds
Nominees, Nominees., Nominees.
Ordinary, Ordinary Dividends
Patronage, Patronage dividends.
Payments in lieu of, Payments in lieu of dividends.
Qualified, Qualified Dividends, Qualified dividends., Child's qualified dividends.
Qualified foreign corporation, Qualified foreign corporation.
Received in January, Dividends received in January.
Reinvestment plans, Dividends Used To Buy More Stock, Automatic investment service and dividend reinvestment plans., Dividend reinvestment plans.
Reporting requirements, Form 1099-DIV., How To Report Dividend Income, Liquidating distributions.
Restricted stock, Dividends received on restricted stock.
Sale or trade vs., Dividend versus sale or trade.
Scrip, Scrip dividends.
Sold stock, Dividends on stock sold.
Stock, Stock dividends., Stock dividends.
Underreported, Underreported interest and dividends.
Veterans' insurance, Interest on VA dividends., Dividends on veterans' insurance.

Divorce, Property Received From Your Spouse, Transfers Between Spouses

Education Savings Bond Program, Education Savings Bond Program

Education Savings Bond Program:

Interest excluded under, Interest excluded under the Education Savings Bond Program.
Recordkeeping requirements, Education Savings Bond Program

Employee stock ownership plans (ESOPs), sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives

Employer identification numbers (EINs), Identifying number.

Empowerment zone, Rollover of Gain From Sale of Empowerment Zone Assets

Endowment contracts, Single-premium life insurance, endowment, and annuity contracts.

Enterprise zone facility bonds, Enterprise zone facility bonds.

Equity option, Equity option., Glossary

Estate income received by beneficiary, Beneficiary of an estate or trust.

Exempt-interest dividends on mutual fund stock, Exempt-interest dividends on mutual fund stock.

Expenses of producing income, Expenses of Producing Income

Face-amount certificates, Face-Amount Certificates

Fair market value, Fair market value., Fair market value less than donor's adjusted basis., Fair market value., Glossary

Federal guarantee on bonds, Federally guaranteed bonds.

Fees to buy or sell, Fees to buy or sell.

Financial asset securitization investment trusts (FASITs), FASITs

Foreign currency transactions, Foreign currency contract.

Foreign income, Reminders

Forgone interest, Glossary

Form 1040, Form 1040., Form 1040.

Form 1040, Schedule D, How to report bad debts., How to report., How to report gain., Capital gains and losses—Schedule D.

Form 1040, Schedule D:

Worksheet, completed sample,

Form 1040:

Schedule B, Schedule B.

Form 1040A, Form 1040A., Form 1040A.

Form 1040X, Filing a claim for refund.

Form 1041, Filing requirement.

Form 1065, Filing requirement.

Form 1065:

Schedule K-1, Schedule K-1.

Form 1066, Schedule Q, Schedule Q.

Form 1096, File Form 1099-INT with the IRS., File Form 1099-DIV with the IRS., File Form 1099-B or Form 1099-S with the IRS.

Form 1099-B, Form 1099-B., Form 1099-B transactions., File Form 1099-B or Form 1099-S with the IRS., Reconciliation of Forms 1099-B.

Form 1099-DIV, General Information, Form 1099-DIV., Form 1099-DIV., File Form 1099-DIV with the IRS.

Form 1099-INT, General Information, Form 1099-INT., Form 1099-INT for U.S. savings bond interest., Form 1099-INT., File Form 1099-INT with the IRS., Forms 1099-INT and 1099-OID., Forms 1099-INT and 1099-OID.

Form 1099-MISC, Form 1099-MISC., Reporting Substitute Payments

Form 1099-OID, Form 1099-OID., Form 1099-OID, Form 1099-OID., Forms 1099-INT and 1099-OID., Forms 1099-INT and 1099-OID.

Form 1099-S, Form 1099-S transactions., File Form 1099-B or Form 1099-S with the IRS.

Form 1120, Filing requirement.

Form 1120-A, Filing requirement.

Form 2439, Undistributed capital gains of mutual funds and REITs.

Form 3115, Change from method 2., Choosing To Amortize, How To Make the Mark-to-Market Election

Form 4684, Ordinary loss or casualty loss.

Form 4797, How to report., Losses on Section 1244 (Small Business) Stock, How to report.

Form 4952, Form 4952

Form 6198, At-risk rules.

Form 6781, Form 6781., How to report., How To Report Gains and Losses (Form 6781), Section 1256 contracts and straddles., Form 6781.

Form 8271, Tax Shelter Registration Number

Form 8275, Negligence or disregard of rules or regulations.

Form 8275-R, Negligence or disregard of rules or regulations.

Form 8582, Form 8582.

Form 8614, Tax on investment income of a child under age 14.

Form 8615, Tax on investment income of a child under age 14.

Form 8815, Form 8815., Figuring the interest part of the proceeds (Form 8815, line 6)., Interest excluded under the Education Savings Bond Program.

Form 8824, How to report.

Form 8832, Clubs formed before 1997.

Form 8886, Reportable Transaction Disclosure Statement, Negligence or disregard of rules or regulations.

Form SS-4, Identifying number.

Form W-8BEN, Nonresident aliens.

Form W-9, Certification.

Form:

1066 (Schedule Q), Investment expenses from pass-through entities.
3115, Change from method 2.
4952, Form 4952

Forward contracts, Glossary

Fractional shares, Fractional shares., Automatic investment service.

Free tax services, 5. How To Get Tax Help

Frozen deposits, Interest income on frozen deposits., Frozen deposits.

Futures contracts:

Definition, Glossary
Regulated, Regulated futures contract., Glossary
Securities, Securities futures contract. , Securities futures contract to sell., Securities Futures Contracts

Futures, commodity, Commodity Futures, Commodity futures., Glossary

Futures, commodity:

Wash sales, Options and futures contracts.

Gains on qualified small business stock, Gains on Qualified Small Business Stock

Gains on sales or trades, How To Figure Gain or Loss, Gain on Sale or Trade of Depreciable Property

Gains on sales or trades:, Capital Gains and Losses

(see also Capital gains and losses)

Gifts, Income from property given to a child., Property Received as a Gift, Property received as a gift., Glossary

Glossary, Glossary

Government obligations, Government obligations.

Hedging transactions, Hedging exception., Hedging Transactions, Hedging transaction.

Help (see Tax help)

Holding period:

Investment property, Holding Period
Replacement stock, Holding period of replacement stock.
Straddles, Holding Period and Loss Treatment Rules

Income from sources outside U.S., Reminders

Income tax treaties (Table 1-3), Qualified Dividends

Indian tribal government, Indian tribal government.

Individual retirement arrangements (IRAs):

Interest income, Individual retirement arrangements (IRAs).

Inflation-indexed debt instruments, Inflation-Indexed Debt Instruments, Stripped inflation-indexed debt instruments.

Inherited property:

Basis, Property Received as Inheritance
Holding period, Inherited property.
Transfer by inheritance, Transfer by inheritance.

Insolvency of contractors, Insolvency of contractor.

Installment sales, Installment sales.

Insurance:

Borrowing on, Borrowing on insurance.
Dividends, interest on, Interest on insurance dividends., Dividends on insurance policies.
Interest option on, Interest option on insurance.
Life insurance companies, demutualization, Demutualization of Life Insurance Companies
Life, paid to beneficiary, Insurance
Prepaid premiums, Prepaid insurance premiums.
Single-premium life, Single-premium life insurance, endowment, and annuity contracts.
Trades, Insurance Policies and Annuities
Veterans' dividends, interest on, Interest on VA dividends., Dividends on veterans' insurance.

Interest expenses:

Allocation of, Allocation of Interest Expense

Investment interest, Investment Interest, Glossary

Investment interest:

Limit on, Limit on interest deduction for market discount bonds., Limit on Deduction
When to deduct, When To Deduct Investment Interest

Margin accounts, Interest on margin accounts.

Paid in advance, Interest paid in advance.

Straddles, Interest expense and carrying charges on straddles.

Unstated, Unstated interest.

Interest income, Interest Income, Taxable Interest — General

Interest income:

Annuity contracts, Interest on annuity contract.
Bonds traded flat, Bonds traded flat.
Condemnation awards, Interest on condemnation award.
Deferred interest accounts, Money market certificates, savings certificates, and other deferred interest accounts.
Dividends on deposit or share accounts, Dividends that are actually interest.
Frozen deposits, Interest income on frozen deposits., Frozen deposits.
Gift for opening account, Gift for opening account.
Individual retirement arrangements (IRAs), Individual retirement arrangements (IRAs).
Installment sale payments, Installment sale payments.
Insurance dividends, Interest on insurance dividends.
Money market certificates, Money market certificates, savings certificates, and other deferred interest accounts.
Money market funds, Money market funds.
Nominee distributions, Nominees.
Prepaid insurance premiums, Prepaid insurance premiums.
Reporting, When To Report Interest Income, Penalty on early withdrawal of savings.
Savings certificates, Money market certificates, savings certificates, and other deferred interest accounts.
Seller-financed mortgage, Form 1040A., Interest on seller-financed mortgage.
Tax refunds, Interest on tax refunds.
Tax-exempt, Tax-Exempt Interest, Reporting tax-exempt interest.
Taxable, Taxable Interest — General, Bonds traded flat., Taxation of interest., Taxable Interest
U.S. savings bonds, person responsible for tax (Table 1-2), Table 1-2. Who Pays the Tax on U.S. Savings Bond Interest
Underreported, Underreported interest and dividends.
Usurious interest, Usurious interest.
VA insurance dividends, Interest on VA dividends.

Investment clubs, Investment Clubs, Filing requirement.

Investment counsel and advice, Investment counsel and advice.

Investment expenses, 3. Investment Expenses, Unpaid expenses owed to related party.

Investment expenses:

Allocated, Allocated investment expenses.
At-risk rules, At-risk rules.
Deductible, Expenses of Producing Income
Limits on deductions, Limits on Deductions
Nondeductible, Nondeductible Expenses
Pass-through entities, Investment expenses from pass-through entities.
Reporting requirements, How To Report Investment Expenses

Investment income, 1. Investment Income

Investment income:

Children, Tax on investment income of a child under age 14., Investment income of child reported on parent's return.
General Information, General Information
Net income, Net Investment Income
Records to keep, General Information
Reporting of (Table 1-1),

Investment property, Investment property.

Investment property:

Basis, Basis of Investment Property
Definition, Investment property.
Gain or loss treatment, Investment property.
Gift, received as, Property Received as a Gift
Holding period, Holding Period
Liquidation, received in, Investment property received in liquidation.
Nontaxable trades, received in, Property Received in Nontaxable Trades
Sales and trades, 4. Sales and Trades of Investment Property
Services, received for, Property Received for Services
Spouse, received from, Property Received From Your Spouse
Taxable trades, received in, Property Received in Taxable Trades

Joint accounts, Joint accounts.
Joint and separate returns, Joint return., Joint and separate returns.

Life insurance companies:

demutualization, Demutualization of Life Insurance Companies

Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges

Like-kind exchanges:

Basis of property received, Basis of property received.
Reporting requirements, How to report.

Limited partners, Glossary

Liquidating distributions, Liquidating Distributions, Investment property received in liquidation.

Listed options, Listed option., Glossary

Loans:

Below-market, Below-Market Loans, Effective dates., Glossary
Gift and demand, Gift and demand loans., Glossary
Guarantees, Loan guarantees.
Term, Term loans., Glossary

Local government obligations (see State or local government obligations)

Long-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses.

Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument).

Losses on sales or trades:, Capital Gains and Losses

(see also Capital gains and losses)
Amount calculation, How To Figure Gain or Loss
Carryback election, Loss carryback election., Loss carryback election.
Mutual fund or REIT stock held 6 months or less, Loss on mutual fund or REIT stock held 6 months or less.
Passive activities, Passive activity losses., Passive activity losses., Passive activity losses and credits., Losses from passive activities.
Related parties, Losses on Sales or Trades of Property
Section 1244 (small business) stock, Losses on Section 1244 (Small Business) Stock
Small business investment company stock, Losses on Small Business Investment Company Stock
Wash sales, Coordination of Loss Deferral Rules and Wash Sale Rules

Mark-to-market election, Mark-to-market election made.

Marked to market rules, Marked to Market Rules, Mark-to-market election made., Glossary

Market discount bonds, Market discount., Market Discount Bonds, Partial principal payments., Limit on interest deduction for market discount bonds., Market discount on bonds., Market discount bonds., Market discount bonds., Glossary

Accrued market discount, Accrued market discount.

Maximum rate of capital gains (Table 4-2),

Mechanics' and suppliers' liens, Mechanics' and suppliers' liens.

Meetings, expenses of attending, Stockholders' meetings.

Missing children, photographs of, Reminders

Mixed straddles, Mixed straddles., Mixed straddles.

Money market certificates, Money market certificates, savings certificates, and other deferred interest accounts.

Money market funds, Money Market Funds

Money market funds:

Interest income, Money market funds.

More information (see Tax help)

Mortgages:

Revenue bonds, Mortgage revenue bonds.
Secondary liability on home, Secondary liability on home mortgage.
Seller-financed, Interest on seller-financed mortgage.

Municipal bonds, Reporting tax-exempt interest., Tax-exempt state and local government bonds.

Municipal bonds:, State or Local Government Obligations

(see also State or local government obligations)

Mutual funds, Capital Gain Distributions, Other income (nonpassive income)., Choosing to include net capital gain., Including mutual fund or REMIC expenses in income., Shares in a mutual fund or REIT., Loss on mutual fund or REIT stock held 6 months or less.

Mutual funds:

publicly offered, Publicly-offered mutual funds.

New York Liberty bonds, New York Liberty bonds.

Nominee distributions:

Dividends, Nominees., Nominees.
Interest income, Nominees., Nominee distributions.
Original issue discount, Nominee.

Nominee, defined, Glossary

Nonbusiness bad debts, Nonbusiness bad debt. , Nonbusiness Bad Debts

Noncapital assets, Capital Assets and Noncapital Assets

Nondeductible investment expenses, Nondeductible Expenses

Nondividend distributions, Nondividend Distributions

Nonequity options, Nonequity option., Glossary

Nonqualified preferred stock, Nonqualified preferred stock.

Nonresident aliens:

Backup withholding, Nonresident aliens.

Nontaxable return of capital, Basis adjustment.

Nontaxable stock rights, Nontaxable stock rights.

Nontaxable trades, Nontaxable Trades, Nontaxable trades.

Notes

U.S. Treasury (see U.S. Treasury bills, notes, and bonds)

Notes:

Individuals, bought at discount, Notes of individuals.

Office expenses, Clerical help and office rent.

Options, Options, Table 4-1. Puts and Calls

Options dealer, Glossary

Options:

Calls and puts, Calls and Puts, Glossary
Cash settlement, Cash-settled options., Cash settlement option.
Dealer equity, Dealer equity option.
Deep-in-the-money, Qualified covered call options and optioned stock.
Equity, Equity option., Glossary
Gain or loss, Options, Qualified covered call options and optioned stock.
Holding period, Option exercised.
Listed, Listed option., Glossary
Nonequity, Nonequity option., Glossary
Qualified covered call, Qualified covered call options and optioned stock.
Reporting requirements, How to report.
Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contract options.
Wash sales, Options and futures contracts.

Ordinary gains and losses, Capital or Ordinary Gain or Loss, Ordinary loss or casualty loss.

Original issue discount (OID), Original issue discount., Original Issue Discount (OID), Stripped tax-exempt obligations., Original issue discount (OID) on debt instruments., Glossary

Original issue discount (OID):

Adjustment to, Original issue discount (OID) adjustment.
Reporting requirements, Exceptions to reporting OID., Form 1099-OID
Rules, Applying the OID Rules

Pass-through entities:

Rollover of gain, Pass-through entity.

Passive activities, Glossary

Passive activities:

Gains and losses, Passive activity losses., Passive activity losses., Passive activity losses and credits., Losses from passive activities., Passive activity gains and losses.

Patronage dividends, Patronage dividends.

Penalties:

Accuracy-related, Accuracy-related penalty., Accuracy-related penalties.
Backup withholding, Penalties.
Civil fraud, Civil fraud penalty.
Early withdrawal, Interest subject to penalty for early withdrawal., Penalty on early withdrawal of savings.
Failure to pay tax, Failure to pay tax.
Failure to supply SSN, Penalty for failure to supply SSN.
Substantial understatement, Substantial understatement of tax.
Valuation misstatement, Valuation misstatement.

Political parties:

Debts owed by, Debts owed by political parties.

Portfolio income, Glossary

Preferred stock:

Nonqualified, Nonqualified preferred stock.
Redeemable at a premium, Preferred stock redeemable at a premium.
Stripped, Stripped Preferred Stock, Glossary

Premiums on bonds, Bond premium., Premiums on bonds., Glossary

Private activity bonds, Arbitrage bonds., Glossary

Public utility stock reinvestment, Public utilities.

Publications (see Tax help)

Puts and calls, Calls and Puts, Glossary

Puts and calls:

Table 4-1, Table 4-1. Puts and Calls

Qualified dividends, Qualified dividends.

Qualified small business stock, Qualified small business stock., Qualified small business stock., Gains on Qualified Small Business Stock

Gains on, Gains on Qualified Small Business Stock

Real estate investment trusts (REITs), Undistributed capital gains of mutual funds and REITs., Shares in a mutual fund or REIT., Loss on mutual fund or REIT stock held 6 months or less.

Real estate mortgage investment conduits (REMICs), REMICs, Expenses., Including mutual fund or REMIC expenses in income., Glossary

Real estate mortgage investment conduits (REMICs):

Regular interest, Regular Interest
Residual interest, Residual Interest, Residual interests in a REMIC.

Recordkeeping, Losses on Section 1244 (Small Business) Stock

Recordkeeping requirements:

Education Savings Bond Program, Education Savings Bond Program
Investment income, General Information
Small business stock, Losses on Section 1244 (Small Business) Stock

Redemption of stock, Redemption of stock.

Redemption or retirement of bonds, Redemption or retirement of bonds.

Regulated futures contract, Regulated futures contract., Glossary

REITs (see Real estate investment trusts (REITs))

Related persons, Related persons.

REMICs (see Real estate mortgage investment conduits (REMICs))

Reorganizations, corporate, Corporate reorganizations.

Reporting requirements:

Bad debts, How to report bad debts.
Bond premium amortization, How To Report Amortization
Capital gains and losses, How To Report Gains and Losses (Form 6781), How to report gain., Reporting Capital Gains and Losses
Dividend income, How To Report Dividend Income
Exempt-interest dividends, Information-reporting requirement.
Interest on U.S. savings bonds, Reporting options for cash method taxpayers., Choice to report interest each year.
Investment expenses, How To Report Investment Expenses
Like-kind exchanges, How to report.
Options, How to report.
Original issue discount, Form 1099-OID
S corporation income, deductions, and credits, Reporting S corporation income, deductions, and credits.
Section 1256 contracts, How To Report
State or local government obligations, Information reporting requirement.
Straddles, Section 1256 contracts and straddles.
Substitute payments, Reporting Substitute Payments
Tax-exempt interest income, Reporting tax-exempt interest.
Trades, How To Report
Wash sales, How to report.

Repossession of real property, Real property repossessed.

Restricted property, Restricted property.

Restricted stock, Dividends received on restricted stock., Glossary

Retirement of debt instrument, Retirement of debt instrument.

Return of capital (see Nondividend distributions)

Revocable trust, trustee's commissions for, Trustee's commissions for revocable trust.

Rollover of gain from sale:

Empowerment zone assets, Rollover of Gain From Sale of Empowerment Zone Assets
Securities, Rollover of Gain From Publicly Traded Securities, Rollover of Gain

S corporations, S Corporations, S corporation stock.

Safe deposit box, Safe deposit box rent.

Sales and trades of investment property, 4. Sales and Trades of Investment Property, How To Make the Mark-to-Market Election

Sales and trades of investment property:

Definition, What Is a Sale or Trade?

Savings bonds (see U.S. savings bonds)

SBIC stock (see Small business investment company stock)

Scrip dividends, Scrip dividends.

Section 1202 gain, Section 1202 Exclusion

Section 1244 stock, Losses on Section 1244 (Small Business) Stock

Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contracts., Section 1256 contract options., Section 1256 contracts and straddles., Glossary

Section 1256 contracts:

Net gain on, Net section 1256 contracts gain.
Net loss on, Net section 1256 contracts loss.
Reporting requirements, How To Report

Securities futures contracts, Dealer securities futures contract., Securities futures contract. , Securities Futures Contracts, Glossary

Securities:

Holding period, Holding Period
Installment sales, Installment sales.
Lost, stolen, etc., cost of replacing, Cost of replacing missing securities.
Rollover of gain from sale, Rollover of Gain From Publicly Traded Securities, Rollover of Gain
Traders in, Special Rules for Traders in Securities
Worthless, Worthless Securities, Worthless securities.

Self-employment income, Self-Employment Income

Self-employment tax, Self-employment tax.

Seller-financed mortgages, Interest on seller-financed mortgage.

Short sales, Short Sales, Extraordinary dividends.

Short sales:

Adjusted basis, Short sales.
Defined, Glossary
Expenses of, Short-sale expenses.
Extraordinary dividends, Extraordinary dividends.
Puts, Put option as short sale.
Small business investment company stock, Short sale.

Short-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses.

Short-term obligations, Discount on Short-Term Obligations, Choosing to include accrued discount and other interest in current income., Acquisition discount on short-term obligations., Short-term government obligations.

Short-term obligations:

Interest deduction, limit on, Limit on interest deduction for short-term obligations.

Sixty/forty rule, 60/40 rule.

Small business investment company stock, Losses on Small Business Investment Company Stock, SSBIC stock.

Small business investment company stock:

Reporting requirements, How to report.

Small business stock, Qualified small business stock., Losses on Section 1244 (Small Business) Stock, Qualified small business stock., Gains on Qualified Small Business Stock

Social security number (SSN):

Custodial accounts, Custodian account for your child.
Joint accounts, SSN for joint account.
Requirement to give, Social security number (SSN).

Specialized small business investment company stock, Specialized small business investment company stock or partnership interest., SSBIC stock.

Spouses:

Transfers between, Property Received From Your Spouse, Transfers Between Spouses

Transfers between:, Related Party Transactions

(see also Related party transactions)

State or local government obligations, State or Local Government Obligations, Market discount.

Market discount bonds (see Market discount bonds)

State or local government obligations:

Private activity bonds, Arbitrage bonds., Glossary
Registration requirement, Registration requirement.
Tax-exempt interest, Tax-Exempt Interest
Taxable interest, Taxable Interest

Stock

Dividends (see Dividends)
Straddles (see Straddles)

Stock:

Basis, Basis adjustment., Basis adjustment., Basis., Stocks and Bonds, Basis of replacement stock.
Capital asset, Stocks, stock rights, and bonds.
Constructive ownership, Constructive ownership of stock.
Convertible, Convertible stocks and bonds.
Corporate, Corporate Stocks
Fractional shares, Fractional shares., Automatic investment service.
Identification, Identifying stock or bonds sold.
Installment sales, Installment sales.
Nonqualified preferred stock, Nonqualified preferred stock.
Public utility, reinvestment, Public utilities.
Redemption of, Redemption of stock.
Replacement stock, Basis of replacement stock.
Restricted stock, Dividends received on restricted stock., Glossary
Rights, Distributions of Stock and Stock Rights, Stock rights., Nontaxable stock rights.
S corporations, S corporation stock.
Sales to ESOPs or cooperatives, Sales of Stock to ESOPs or Certain Cooperatives
Small business, Qualified small business stock., Qualified small business stock.
Specialized small business investment company, Specialized small business investment company stock or partnership interest.
Splits, Stock splits.
Stripped preferred stock, Stripped Preferred Stock, Glossary
Surrender of, Surrender of stock.
Trades, Stock for stock of the same corporation.
Trust instruments treated as, Certain trust instruments treated as stock.

Straddles, Straddles, Interest expense and carrying charges relating to mixed straddle account positions.

Straddles:

Defined, Glossary
Holding period, Holding Period and Loss Treatment Rules
Interest expense and carrying charges, Interest expense and carrying charges on straddles.
Loss deferral rules, Loss Deferral Rules
Mixed, Mixed straddles., Mixed straddles., Mixed Straddle Elections
Reporting requirements, Section 1256 contracts and straddles.

Stripped bonds and coupons, Stripped bonds or coupons., Stripped Bonds and Coupons, Stripped tax-exempt obligation.

Stripped preferred stock, Stripped Preferred Stock, Glossary

Substitute payments, Reporting Substitute Payments

Suggestions for publication, Comments and suggestions.

Tables:

Capital gains maximum rate (Table 4-2),
Income tax treaties (Table 1-3), Qualified Dividends
Investment income, reporting of (Table 1-1),
Puts and calls (Table 4-1), Table 4-1. Puts and Calls
U.S. savings bonds, person responsible for tax (Table 1-2), Table 1-2. Who Pays the Tax on U.S. Savings Bond Interest

Tax help, 5. How To Get Tax Help

Tax rates: