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Publication 544

Chapter 4
Reporting Gains and Losses(p35)


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.


Useful items

You may want to see:

 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.

Information Returns(p36)

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.

Form 1099-B.(p36)

If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a substitute statement from the broker. Use the Form 1099-B or a substitute statement to complete Form 8949 and/or Schedule D. Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. on Form 8949 and/or Schedule D, as applicable. For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. For information on reporting the gains and losses, see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040).

Form 1099-S.(p36)

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.
For more information see chapter 4 in Publication 550. Also, see the Instructions for Form 8949.