Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Capital Gain or Loss Workout

Workout Resources

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. Begin this lesson by reviewing the lesson Income Capital Gain or Loss (Form 1040, Line 13) from Publication 4491.

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

  • Compute the adjusted basis of a capital assets or other investment property
  • 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 if 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
Graphic of hand weights.