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Publication 544

Sales and Other  
Dispositions of  


What is New(p1)


Nontaxable exchanges of life insurance contracts.(p1)

Beginning in 2010, you will not be taxed for exchanges of certain life insurance contracts. See Insurance Policies and Annuities in chapter 1.

100% exclusion of gain on qualified small business stock.(p1)

You may be able to exclude from income up to 100% of your gain from the sale or trade of qualified small business stock you acquired after September 27, 2010, and before January 1, 2012, if you hold the stock for more than 5 years. See Sales of Small Business Stock, in chapter 1.

Important Reminders(p1)


Dispositions of U.S. real property interests by foreign persons.(p1)

If you are a foreign person or firm and you sell or otherwise dispose of a U.S. real property interest, the buyer (or other transferee) may have to withhold income tax on the amount you receive for the property (including cash, the fair market value of other property, and any assumed liability). Corporations, partnerships, trusts, and estates also may have to withhold on certain U.S. real property interests they distribute to you. You must report these dispositions and distributions and any income tax withheld on your U.S. income tax return.
For more information on dispositions of U.S. real property interests, see Publication 519, U.S. Tax Guide for Aliens.

Foreign source income.(p2)

If you are a U.S. citizen with income from dispositions of property outside the United States (foreign income), you must report all such income on your tax return unless it is exempt from U.S. law. This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payor.

Photographs of missing children.(p2)

The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.


You dispose of property when any of the following occurs.
This publication explains the tax rules that apply when you dispose of property. It discusses the following topics.
This publication also explains whether your gain is taxable or your loss is deductible.
This publication does not discuss certain transactions covered in other IRS publications. These include the following.

Forms to file.(p2)

When you dispose of property, you usually will have to file one or more of the following forms.

Comments and suggestions.(p2)

We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address.

Internal Revenue Service 
Business Forms and Publications Branch 
1111 Constitution Ave. NW, IR-6526 
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.
You can email us at * (The asterisk must be included in the address.) Please put "Publications Comment" on the subject line.You can also send us comments from, select "Comment on Tax Forms and Publications" under "Information about."
Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.
Ordering forms and publications.(p2)
Visit to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received.

Internal Revenue Service 
1201 N. Mitsubishi Motorway 
Bloomington, IL 61705-6613

Tax questions.(p2)
If you have a tax question, check the information available on or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.