1231b Property

Question 1

1231b property isnt 1221 property bu

Answer 1

may still gettaxed like it.

Question 2

1231 is aka

Answer 2

quasi capital assets

Question 3

function of 1231 is to allow for

Answer 3

certain gains that arent capital assets to be taxed at capital rates

Question 4

1221 isnt for

Answer 4

bus property, depreciable or real property

Question 5

1231 is for

Answer 5

bus prop, depreciable, or real prop

Question 6

**1231 prop must be:

Answer 6

used in trade/bus and held for mroe than a year and either be depreciable under 167 OR be real property.

Question 7

1231 gives pref rates to non

Answer 7

1221 property

Question 8

assets excluded from 1231

Answer 8

inventory, copyrights, personal prop (since its not bus)

Question 9

in 1231 in order for loss to factor in it must be

Answer 9

deductible

Question 10

1231 gain netting process

Answer 10

1. Calculate all 1231 gains and losses
2. Compare
3. If gainsexceeds losses- LTCG
4. STILL DONT NET,

Question 11

IF GAIN less than losses

Answer 11

gains= ordinary income and losses= ordinary losses

Question 12

if gains exceed losses

Answer 12

taxed as LTCG

Question 13

1231 IS FAVORABLE BECAUSE

Answer 13

if gain, pref rates, if loss ordinary loss which offsets ordinary income.

Question 14

1231 includes

Answer 14

bus prop, depreciable or real prop held for mroe than 1 year