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Current Year Tax Map
Publication 544
taxmap/pubs/p544-016.htm#en_us_publink100072627

Chapter 4
Reporting Gains and Losses(p35)

taxmap/pubs/p544-016.htm#en_us_publink1000276605Introduction

This chapter explains how to report capital gains and losses and ordinary gains and losses from sales, exchanges, and other dispositions of property.
Although this discussion refers to Schedule D (Form 1040) and Form 8949, many of the rules discussed here 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.

taxmap/pubs/p544-016.htm#TXMP492c79ac

Useful items

You may want to see:


Publication
 550 Investment Income and Expenses
 537 Installment Sales
Form (and Instructions)
 Schedule D (Form 1040) : Capital Gains and Losses
 1099-B: Proceeds From Broker and Barter Exchange Transactions
 1099-S: Proceeds From Real Estate Transactions
 4684: Casualties and Thefts
 4797: Sales of Business Property
 6252: Installment Sale Income
 6781: Gains and Losses from Section 1256 Contracts and Straddles
 8824: Like-Kind Exchanges
 8949: Sales and Other Dispositions of Capital Assets
See chapter 5 for information about getting publications and forms.
taxmap/pubs/p544-016.htm#en_us_publink100072628

Information Returns(p35)

rule
If you sell or exchange certain assets, you should receive an information return showing the proceeds of the sale. This information is also provided to the IRS.
taxmap/pubs/p544-016.htm#en_us_publink100072629

Form 1099-B.(p35)

rule
If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B or a substitute statement from the broker. Use the Form 1099-B or a substitute statement to complete Form 8949 and Schedule D. Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. on Form 8949 and Schedule D where appropriate. For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. Also see the Instructions for Form 8949.
taxmap/pubs/p544-016.htm#en_us_publink100072630

Form 1099-S.(p35)

rule
An information return must be provided on certain real estate transactions. Generally, the person responsible for closing the transaction (the "real estate reporting person") must report on Form 1099-S sales or exchanges of the following types of property. If you sold or exchanged any of the above types of property, the "real estate reporting person" must give you a copy of Form 1099-S or a statement containing the same information as the Form 1099-S. The "real estate reporting person" could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property.
If you receive or will receive property or services in addition to gross proceeds (cash or notes) in this transaction, the "real estate reporting person" reporting it does not have to value that property or those services. In that case, the gross proceeds reported on Form 1099-S will be less than the sales price of the property you sold. Figure any gain or loss according to the sales price, which is the total amount you realized on the transaction. For more information see chapter 4 in Publication 550. Also, see the instructions for Form 8949 for how to report these transactions and include them on Form 8949 and Schedule D, as appropriate.