Capital Gains and Property Transactions
How gains and losses are recognized, characterized, and deferred.
Key sections and concepts
- Section 453
Installment sales
Reports gain as payments are received, reported on Form 6252.
- Section 1001
Gain or loss on sale
Determines the amount of gain or loss realized.
- Section 1031
Like-kind exchanges
Defers gain on qualifying exchanges of real property.
- Section 1091
Wash sales
Disallows losses when substantially identical securities are bought around a sale.
- Section 1221
Capital asset defined
Defines capital assets.
- Section 1222
Short-term and long-term
Sets the capital gain and loss holding periods.
- Section 1231
Business property gains
Sets the treatment of gains and losses on certain business property.
- Section 1245
Depreciation recapture
Recaptures depreciation as ordinary income on personal property.
- Section 1250
Real property recapture
Covers recapture on depreciable real property.
Popular search topics
- 1031 exchange rules
- wash sale rule
- capital gains rates
- depreciation recapture
- Form 4797
- Form 6252
- stock basis
- crypto tax reporting
- Form 1099-DA
- rental property sale tax
For general education only, not tax advice. Tax law changes often, so confirm current rules and amounts with primary sources.
Articles on this topic
Basics
Capital Gains: Short-Term vs. Long-Term
How capital gains are taxed, what the one-year holding period means, and how capital losses work.
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Basics
The Wash Sale Rule Explained
How Section 1091 disallows losses when you rebuy the same security within 30 days, and what happens to the disallowed loss.
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Advanced
Section 1031 Like-Kind Exchanges
How 1031 exchanges defer gain on real property, including the 45-day and 180-day deadlines, boot, and qualified intermediaries.
Read article
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