Sale or Exchange of Property
Federal Tax Course – Lesson 6

Introduction 601
Definition of Terms 602
Selling Expenses 603
Tax Treatment Depends on Type of Property Sold or Exchanged 604
Sales and Exchanges of “Personal Use” Property 605
Sales and Exchanges of Business and Investment Property 606
What is a “Like-Kind” Exchange 607
Trade or Exchange Involving Both Property and Money 608
Exchange of Securities 609
Exchanges of Insurance Policies 610
How the Non-Recognition of Gain or Loss Affects Basis 611
When is a Recognized Gain or Loss Reportable? 612
Special Cases Where Gain on a Sale is Not Recognized 613
Recognition of Gains and Losses — Summary 614
Tax Planning Considerations 615
Conclusion 616