Introduction This publication explains the tax rules that apply when you disposeof property. It covers the following topics. How to figure a gain or loss. Whether your gain or loss is ordinary or capital. How to treat your gain or loss when you dispose of businessproperty. How to report a gain or loss. This publication also explains whether your gain is taxable oryour loss is deductible. This publication does not discuss certain transactionscovered in other IRS publications. These include the following. Most transactions involving stocks, bonds, options, forwardand futures contracts, and similar investments, discussed in chapter 4 of Publication 550, Investment Income and Expenses. Sale of your main home, discussed in Publication 523,Selling Your Home. Installment sales, discussed in Publication 537,Installment Sales. 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 occur. You sell property. You exchange property for other property. Your property is condemned or disposed of under threat ofcondemnation. Your property is repossessed. You abandon property. You give property away. Forms to file.When you dispose of property, you will usually have to file one ormore of the following forms. Schedule D (Form 1040), Capital Gains andLosses. Form 4797, Sales of Business Property. Form 8824, Like-Kind Exchanges. Chapter 4illustrates how to fill out Form 4797 and Form 8824.