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Publication 544

Sales and Other  
Dispositions of  


Future Developments(p1)

For the latest information about developments related to Pub. 544, such as legislation enacted after it was published, go to

What's New(p1)

Basis of property acquired from decedent.(p1)
An estate (or other person) required to file an estate tax return after July 31, 2015, must provide a statement to both the IRS and any beneficiary who receives property from the estate. The statement must show the estate tax value of the property. If the property increases the estate tax liability, the beneficiary must use a basis consistent with the estate tax value of the property to figure his or her gain or loss when the property is sold or deemed sold. Notice 2015‐57, 2015‐36 I.R.B. 294, available at, delayed the due date for the statement until February 29, 2016. Additional guidance is being developed. For more information, see

Important Reminders(p2)

Dispositions of U.S. real property interests by foreign persons.(p2)
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 Pub. 519, U.S. Tax Guide for Aliens. Also see Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
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.
Although the discussions in this publication may at times refer mainly to individuals, many of the rules discussed 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.

Comments and suggestions.(p2)

We welcome your comments about this publication and your suggestions for future editions.
You can send us comments from Click on "More Information" and then on "Give us feedback." Or you can write to:

Internal Revenue Service
Tax Forms and Publications
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.
Although we cannot respond individually to each comment received, 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. Otherwise, you can go to to order current and prior-year forms and instructions. Your order should arrive within 10 business days.
Tax questions.(p2)
If you have a tax question not answered by this publication, check and How To Get Tax Help at the end of this publication.