Publication 544
- Introductory Material
Additional special depreciation allowances.
. The 30% and 50% special depreciation allowances will not apply to
most property placed in service after 2004. However, the special depreciation
allowances are subject to depreciation recapture. See Depreciation
Recapture in chapter 3.
Sale of DC Zone assets.
If you sold or exchanged a District of Columbia Enterprise Zone (DC Zone) asset
that you held for more than 5 years, you may be able to exclude the “qualified capital gain”. For more information,
see Exclusion of Gain From Sale of DC Zone Assets at
the end of chapter 1.
Dispositions of U.S. real property
interests by foreign persons. 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 Publication 519, U.S. Tax Guide for Aliens.
Foreign source income. 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. 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.
This publication explains the tax rules that apply
when you dispose of property. It discusses the following topics.
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How to figure a gain or loss.
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Whether your gain or loss is ordinary or capital.
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How to treat your gain or loss when you dispose
of business property.
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How to report a gain or loss.
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.
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Most transactions involving stocks, bonds, options,
forward and futures contracts, and similar investments, discussed in chapter 4
of Publication 550, Investment Income and Expenses.
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Sale of your main home, discussed in Publication
523, Selling Your Home.
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Installment sales, discussed in Publication 537,
Installment Sales.
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Transfers of property at death, discussed in Publication
559, Survivors, Executors, and Administrators.
Disposing of property. You
dispose of property when any of the following occurs.
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You sell property.
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You exchange property for other property.
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Your property is condemned or disposed of under
threat of condemnation.
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Your property is repossessed.
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You abandon property.
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You give property away.
