Overview

In earlier chapters, income from employment, self-employment and other business entities was covered. Chapter 8, Property Dispositions will cover income from the sale or other disposition of property, both business and personal. Most gains and losses will be reported on Schedule D (Form 1040). The disposition of business property will be reported on Form 4797. Schedule D (Form 1040) is used to report the sale of personal assets. For personal and business asset sales that qualify, Form 6252 is used to report income from installment salesinstallment saleSale where the sales price is collected in a period of time more than one year.. Publication 17 has four chapters on gains and losses. This chapter of your text will direct you to those chapters but will provide a higher level coverage of computing the basis of property and how to treat sales. This text will also provide more information on other topics including like-kind exchangeslike-kind exchangeExchange of real or personal property that are of the same kind or class., involuntary conversionsinvoluntary conversionDestruction or loss of property by theft, seizure, requisition, or condemnation. and business casualty and theft loss treatment.