Introduction

You dispose of property when any of the following occur.

• You sell property.

• You exchange property for other property.

• Your property is condemned or disposed of under threat of condemnation.

• Your property is repossessed.

• You abandon property.

• You give property away.

This publication explains the tax rules that apply when you dispose of property, including when you dispose of only a portion of certain property. It discusses the following topics.

• How to figure a gain or loss on the sale, exchange, and other disposition of property.

• Whether your gain or loss is ordinary or capital.

• How to treat your gain or loss when you dispose of business property.

• How to report a gain or loss on your tax return.

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. The transactions not covered include the following.

• Most transactions involving stocks, bonds, options, forward and futures contracts, and similar investments. See chapter 4 of Pub. 550, Investment Income and Expenses.

• Sale of your main home. See Pub. 523, Selling Your Home.

• Installment sales. See Pub. 537, Installment Sales.

• Transfers of property at death. See Pub. 559, Survivors, Executors, and Administrators.

Note: Although the discussions in this publication 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 apply to individual taxpayers.

Comments and suggestions. We welcome your comments about this publication and suggestions for future editions.

You can send us comments through IRS.gov/ FormComments . Or, you can write to:

Internal Revenue Service Tax Forms and Publications 1111 Constitution Ave. 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 and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/ Help/ITA where you can find topics by using the search feature or viewing the categories listed.

Getting tax forms, instructions, and publications. Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications.

Ordering tax forms, instructions, and publications. Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Don’t resubmit requests you’ve already sent us. You can get forms and publications faster online.

2 Publication 544 (2025)