Assets Dispositions of Sales and Other

1 ContentsFuture 1. Gain or and and to of Gain From Publicly Traded on Sales of Qualified Small Business of Gain From Sale of DC Zone of Gain From Sale of Empowerment Zone 2. Ordinary or Capital Gain or and Exchanges Between Related 3. Ordinary or Capital Gain or Loss for Business 1231 Gains and 4. Reporting Gains and D and Form 5. How To Get Tax DevelopmentsFor the latest information about developments related to Pub. 544, such as legislation enacted after it was published, go to s NewLike-kind exchanges. For exchanges com-pleted after December 31, 2017, the nonrecog-nition rules for like-kind exchanges apply only to exchanges of real property not held primarily for sale. Exceptions apply to property disposed of before January 1, 2018, and to property re-ceived in an exchange before January 1, 2018.

2 See Like-Kind Exchanges, into specialized small business investment companies (SSBICs). Tax-free rollover of publicly traded securities gain into Department of the TreasuryInternal Revenue ServicePublication 544 Cat. No. 15074 KSales and OtherDispositions ofAssetsFor use in preparing2017 ReturnsGet forms and Other information faster and easier at: (English) (Espa ol) ( ) ( ) (Pусский) (Ti ngVi t) Userid: CPMS chema: tipxLeadpct: 100%Pt. size: 8 Draft Ok to PrintAH XSL/XMLF ileid: .. tions/P544/2017/A/XML/Cycle04/source(Ini t. & Date) _____Page 1 of 43 10:59 - 13-Mar-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before 13, 2018 SSBICs is not available for Sales after Decem-ber 31, 2017.

3 See Rollover of Gain From Pub-licly Traded Securities, not treated as capital Assets . For Dispositions after December 31, 2017, certain patents are not treated as capital Assets . In ad-dition, Sales and exchanges of these patents are not section 1231 transactions. See Nonca-pital Assets , and Section 1231 Gains and Los-ses, RemindersDispositions of real property interests by foreign persons. If you are a foreign per-son or firm and you sell or otherwise dispose of a real property interest, the buyer (or Other transferee) may have to withhold income tax on the amount you receive for the property (includ-ing cash, the fair market value of Other property, and any assumed liability). Corporations, part-nerships, trusts, and estates also may have to withhold on certain real property interests they distribute to you.

4 You must report these Dispositions and distributions and any income tax withheld on your income tax more information on Dispositions of real property interests, see Pub. 519, Tax Guide for Aliens. Also see Pub. 515, Withhold-ing of Tax on Nonresident Aliens and Foreign source income. If you are a citi-zen 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 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 of missing children. The Inter-nal Revenue Service is a proud partner with the National Center for Missing & Exploited Children (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank.

5 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you rec-ognize a dispose of property when any of the follow-ing sell exchange property for Other property is condemned or disposed of under threat of property is abandon give property publication explains the tax rules that apply when you dispose of property. It dis-cusses the following to figure a gain or your gain or loss is ordinary or to treat your gain or loss when you dispose of business to report a gain or publication also explains whether your gain is taxable or your loss is publication does not discuss certain transactions covered in Other IRS publications. These include the transactions involving stocks, bonds, options, forward and futures contracts, and similar investments.

6 See chapter 4 of Pub. 550, Investment Income and of your main home. See Pub. 523, Selling Your Sales . See Pub. 537, Install-ment of property at death. See Pub. 559, Survivors, Executors, and to file. When you dispose of property, you usually will have to file one or more of the following D, Capital Gains and 4797, Sales of Business 8824, Like-Kind 8949, Sales and Other Dispositions of Capital 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 and suggestions. We welcome your comments about this publication and your suggestions for future can send us comments through Or you can write to:Internal Revenue ServiceTax Forms and Publications1111 Constitution Ave.

7 NW, IR-6526 Washington, DC 20224 Although we can t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and forms and publications. 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 questions. If you have a tax question not answered by this publication, check and How To Get Tax Help at the end of this or LossTopicsThis chapter discusses: Sales and exchangesAbandonmentsForeclosures and repossessionsInvoluntary conversionsNontaxable exchangesTransfers to spouseRollovers and exclusions for certain capital gainsUseful ItemsYou may want to see.

8 PublicationSelling Your HomeInstallment SalesCasualties, Disasters, and TheftsInvestment Income and ExpensesBasis of AssetsBankruptcy Tax GuideCanceled Debts, Foreclosures, Repossessions, and AbandonmentsForm (and Instructions)Capital Gains and Individual Income Tax ReturnAmended Individual Income Tax ReturnAcquisition or Abandonment of Secured PropertyCancellation of DebtSales of Business PropertyLike-Kind ExchangesSales and Other Dispositions of Capital AssetsAlthough the discussions in this chapter 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 chapter 5 for information about getting pub-lications and and ExchangesA sale is a transfer of property for money or a mortgage, note, or Other promise to pay money.

9 An exchange is a transfer of property for Other property or services. The following discussions 523 537 547 550 551 908 4681 Schedule D (Form 1040) 1040 1040X 1099-A 1099-C 4797 8824 8949 Page 2 of 43 Fileid: .. tions/P544/2017/A/XML/Cycle04/source10:5 9 - 13-Mar-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before 2 Chapter 1 Gain or Lossdescribe the kinds of transactions that are trea-ted as Sales or exchanges and explain how to figure gain or or lease. Some agreements that seem to be leases may really be conditional Sales con-tracts. The intention of the parties to the agree-ment can help you distinguish between a sale and a is no test or group of tests to prove what the parties intended when they made the agreement.

10 You should consider each agree-ment based on its own facts and circumstan-ces. For more information, see chapter 3 in Pub. 535, Business of a lease. Payments received by a tenant for the cancellation of a lease are treated as an amount realized from the sale of property. Payments received by a landlord (les-sor) for the cancellation of a lease are essen-tially a substitute for rental payments and are taxed as ordinary income in the year in which they are Payments you receive for granting the exclusive use of (or right to exploit) a copy-right throughout its life in a particular medium are treated as received from the sale of prop-erty. It does not matter if the payments are a fixed amount or a percentage of receipts from the sale, performance, exhibition, or publication of the copyrighted work, or an amount based on the number of copies sold, performances given, or exhibitions made.