IRS Publication 544

AAA

DEFINITION of 'IRS Publication 544'

A document published by the Internal Revenue Service (IRS) that provides information on how taxpayers are to treat income from the sale, exchange or disposal of property. IRS Publication 544 outlines how gains and losses on the property are calculated, whether they are considered ordinary or capital, and how to report them to the IRS. The document also indicates whether a gain is taxable or loss deductible.


Taxpayers typically must file Schedule D of Form 1040, Form 4797 (Sales of Business Property), or Form 8824 (Like-Kind Exchanges).

INVESTOPEDIA EXPLAINS 'IRS Publication 544'

Individuals, businesses and estates that purchase real property from foreign persons may have to withhold income tax if the property acquired is in the United States. IRS Publication 519 has more information on how aliens are to treat U.S. tax law.


Investments, such as stocks, bonds and options, the sale of a primary (main) home, installment sales, and property transfers are not discussed in IRS Publication 544.

RELATED TERMS
  1. Like-Kind Exchange

    A tax deferred exchange that allows for the disposal of an asset ...
  2. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  4. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  5. Schedule D

    A U.S. income tax form used by taxpayers to report their realized ...
  6. Separation Of Powers

    An organizational structure in which responsibilities, authorities, ...
Related Articles
  1. Taxes

    Will Your Home Sale Leave You With Tax Shock?

    Learn how the newest tax laws apply to the proceeds you earn.
  2. Taxes

    Avoiding A Big Tax Bill On Real Estate Gains

    Installment sales allow sellers to defer taxes on real estate profits.
  3. Taxes

    Using Tax Lots: A Way To Minimize Taxes

    The method of identifying cost basis can help you to get the most out of reduced tax rates.
  4. Active Trading

    Trade Properties To Keep The Taxman At Bay

    Like-kind exchanges can mean a much lower tax bill on real estate for savvy investors.
  5. Taxes

    Sell Your Rental Property For A Profit

    Being a landlord can be taxing, especially when you want to sell. Find out how to reduce your burden.
  6. Taxes

    Avoid Capital Gains Tax On Your Home Sale

    If you have property to sell and want to avoid capital gains tax, a Section 1031 exchange may be the answer.
  7. Retirement

    Who is exempt from paying Social Security taxes?

    Learn about the groups of people who qualify for exemption from Social Security taxes, and explore the process of applying for exemption.
  8. Taxes

    Can you write variable costs off your taxes?

    Learn if you can deduct variable or fixed costs from your business taxes and learn more about business deductions, cost of goods sold and gross profit.
  9. Economics

    How is the invisible hand affected in a communist or socialist economy?

    Discover why the invisible hand of the market is compromised by socialist and communist economies, where the government controls the means of production.
  10. Economics

    What is the affect of the invisible hand on the government?

    Find out why government policy goals are often frustrated by the same forces that guide the invisible hand of the market towards efficient outcomes.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center