Form 1040 Part 3: Property Income

Overview

Investing in property is costly, but platforms like Airbnb and VRBO make it easier to recoup expenses. It’s crucial to understand the tax rules for renting property, especially if it’s used as a residence. This course covers the tax treatment of property transactions, including real estate, stocks, bonds, vehicles, jewelry, and collectibles. It explains how to calculate and treat gains or losses for tax purposes.

Learning Objectives

  • identify the general tax treatment of rental income and rental expenses
  • correctly apply the rules governing the tax treatment of rental property used for personal purposes by the taxpayer
  • correctly determine the basis in property acquired through such means as purchase, gift, and inheritance
  • correctly calculate the gain or loss on the sale or trade of property
  • apply the general rules governing the tax treatment of gains and losses from investment transactions
  • apply the federal tax rules concerning the exclusion of gain on the sale of a main home to correctly calculate the taxable gain or loss on such sales

Tax Year: 2023

Designed For

Newer tax professionals and those looking for a basic review of the tax treatment of transactions related to property owned by an individual taxpayer.

Advanced Preparation

None

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