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Sales of property: home, installment, like-kind and recapture

SEE 1 Chapter 14 · IRS outline 2C1, 2C6, 2C7, 2C9

Big sales make big tax bills, and the SEE loves them. Hank and Rose are selling the home they raised their kids in, Daniel sold his old work van, Lily's uncle sold land with the buyer paying over five years, and the Muellers want to swap their duplex for a bigger rental without paying tax now. Each sale has its own rule: the home sale exclusion, depreciation recapture, the installment method and like-kind exchanges. Nadia teaches Theo to start every sale with the closing statement.

In this chapter

1. Selling a main home: the §121 exclusion
2. Business property: §1231, depreciation recapture and Form 4797
3. Installment sales
4. Like-kind exchanges
5. Reading the closing statement, 1099-S, 1099-A and involuntary conversions

This chapter has 5 lessons and 68 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Section 121 home sale exclusion
• installment sales
• like-kind exchanges
• depreciation recapture and Form 4797
• Form 1099-A

Chapter 13: Basis and capital gains · Chapter 15: Adjustments to income and the new OBBBA deductions