Introduction

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 generally 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 will usually not apply to taxpayers other than individuals.

Topics This chapter discusses:

• Information returns,

• Schedule D (Form 1040),

• Form 4797, and

• Form 8949.

Useful Items You may want to see:

Publication

550

537

550 Investment Income and Expenses

537 Installment Sales

52 Chapter 4 Reporting Gains and Losses Publication 544 (2025)

Form (and Instructions)

Schedule D (Form 1040)

Schedule D (Form 1040) Capital Gains and Losses

1099-B 1099-B Proceeds From Broker and Barter Exchange

Transactions

1099-DA 1099- D A igital Asset Proceeds from Broker

Transactions

• An inherently permanent structure, including any residential, commercial, or industrial building.

• A condominium unit and its related fixtures and common elements (including land).

• Stock in a cooperative housing corporation.

• Any noncontingent interest in standing timber.

If you sold or exchanged any of the above types of property, the person responsible for closing the transaction must give you a copy of Form 1099-S or a substitute statement containing the same information as Form 1099-S. Your Form 1099-S will show the gross proceeds from the sale or exchange in box 2. See the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040) for how to report these transactions. Also see chapter 2 of Pub. 550.

For more information, see chapter 4 of Pub. 550. Also, see the Instructions for Form 8949.