Publication 4491 Capital Gain or Loss Income

This lesson provides links to resource materials and practice to help you assist taxpayers who must use Form 8949, Sales and Other Dispositions of Capital Assets, in conjunction with Form 1040, Schedule D, Capital Gains and Losses, to report capital gains and/or losses on the sale of assets. This lesson will help you identify the asset’s holding period, adjusted basis, net short-term and long-term capital gains or losses, the taxable gain or deductible loss, the tax liability, and the amount of any capital loss carryover. Begin this lesson by reviewing the Income - Capital Gain or Loss lesson from Publication 4491.

Use your resource materials to apply what you've learned in the Capital Gain or Loss lesson:

• Determine the adjusted basis of a capital assets
• Determine if an asset's holding period is long-term or short-term
• Calculate the taxable gain or deductible loss from the sale of capital assets
• Determine whether a home is the taxpayer's main home
• Determine if a taxpayer meets the ownership and use tests
• Determine when the 5-year ownership/use test period is suspended