Steps to Compute Gain/Loss on Property Dispositions1.Determine the Amount Realized (AR): Cash + other
2.Determine the Adjusted Basis (AB): Purchase price as
3.Compute the Gain/Loss: AR - AB4.Is the Gain/Loss Recognized?: In other words, is the gain taxable or is the loss deductible? This depends entirely on
5.If recognized, determine the Holding Period: More or less than one year?