Items for Special Treatment

Transactions by a securities dealer. See section 475 and Rev. Rul. 97-39, which begins on page 4 of Internal Revenue Bulletin 1997-39 at IRS.gov/pub/irs-irbs/irb97-39.pdf .

Bonds and other debt instruments. See Pub. 550.

Certain real estate subdivided for sale that may be considered a capital asset. See section 1237.

Gain on the sale of depreciable property to a more-than-50%-owned entity or to a trust of which you are a beneficiary. See Pub. 544.

Gain on the disposition of stock in domestic international sales corporations. See section 995(c).

Gain on the sale or exchange of stock in certain foreign corporations. See section 1248.

Transfer of property to a partnership that would be treated as an investment company if it were incorporated. See Pub. 541.

Sales of stock received under a qualified public utility dividend reinvestment plan. See Pub. 550.

Transfer of appreciated property to a political organization. See section 84.

Transfer of property by a U.S. person to a foreign estate or trust. See section 684.

If you give up your U.S. citizenship, you may be treated as having sold all your property for its fair market value on the day before you gave up your citizenship. This also applies to long-term U.S. residents who cease to be lawful permanent residents. For details, exceptions, and rules for reporting these deemed sales, see Pub. 519 and Form 8854.

In general, no gain or loss is recognized on the transfer of property from an individual to a spouse or a former spouse if the transfer is incident to a divorce. See Pub. 504.

Amounts received on the retirement of a debt instrument are generally treated as received in exchange for the debt instrument. See Pub. 550.

Any loss on the disposition of converted wetland or highly erodible cropland that is first used for farming after March 1, 1986, is reported as a long-term capital loss on Form 8949, but any gain is reported as ordinary income on Form 4797.

If qualified dividends that you reported on Form 1040, 1040-SR, or 1040-NR, line 3a, include extraordinary dividends, any loss on the sale or exchange of the stock is a long-term capital loss to the extent of the extraordinary dividends. An extraordinary dividend is a dividend that equals or exceeds 10% (5% in the case of preferred stock) of your basis in the stock.

Amounts received by shareholders in corporate liquidations. See Pub. 550.

Cash received in lieu of fractional shares of stock as a result of a stock split or stock dividend. See Pub. 550.

Load charges to acquire stock in a regulated investment company (including a mutual fund), which may not be taken into account in determining gain or loss on certain dispositions of the stock if reinvestment rights were exercised. See Pub. 550.

The sale or exchange of S corporation stock or an interest in a partnership or trust held for more than 1 year, which may result in collectibles gain (28% rate gain). See the instructions for line 18.

Gain or loss on the disposition of securities futures contracts. See Pub. 550.

Gain on the constructive sale of certain appreciated financial positions. See Pub. 550.

Certain constructive ownership transactions. Gain in excess of the gain you would have recognized if you had held a financial asset directly during the term of a derivative contract must be treated as ordinary income. See section 1260. If any portion of the constructive ownership transaction was open in any prior year, you may have to pay interest. See section 1260(b) for details, including how to figure the interest. Include the interest as an additional tax on Schedule 2 (Form 1040), line 17z. In the space provided, enter “Section 1260(b) interest” and the amount of the interest. This interest isn’t deductible.

Gain or loss from the disposition of stock or other securities in an investment club. See Pub. 550.

Certain virtual currencies, such as Bitcoin. See the Instructions for Form 1040 and IRS.gov/VirtualCurrencyFAQs .

If you are deferring eligible gain by investing in a QOF, report the gain on the form on which you normally report the gain and report the deferral on Form 8949. See How To Report an Election to Defer Tax on Eligible Gain Invested in a QOF in the Form 8949 instructions.