No short description is available for this image. This flowchart provides guidance to the examiner on the tax treatment of the disposition of property. Start Here This is the start of the flowchart Process 1 - Did you experience an actual property disposition? If yes, go to process 2 If no, go to process 3 Process 2 - Was property sold? If yes, go to process 10 If no, go to process 7 Process 3 - Did you experience a constructive property disposition? If yes, go to process 4 If no, go to process 11 Process 4 - Was property permanently withdrawn from trade or business? If yes, go to process 5 If no, go to process 11 Process 5 - Is this tangible personal property? If yes, go to process 6 If no, go to process 11 Process 6 - Has property been scrapped or moved to a supplies account? If yes, go to process 10 If no, go to process 11 Process 7 - Was property exchanged or transferred? If yes, go to process 10 If no, go to process 8 Process 8 - Was property physically abandoned or discarded? If yes, go to process 9 If no, go to process 11 Process 9 - Is this irrevocable? If yes, go to process 10 If no, go to process 11 Process 10 - This is a taxable event Process 11 - Not a taxable event