Determining capital assets Flashcards
1
Q
Property ISNT a capital asset if held:
A
in trade or business, subject to depreciation; OR real propertty - But see 1231 may still get capital rate
2
Q
personal residence
A
is a capital asset
3
Q
Book manuscript
A
1221 a 3- Not a capital asset if: Held by person who created it.
4
Q
We don’t want to give authors preferential rates because..
A
its their labor! Its ordinary income
5
Q
sale to customer in ordinary course of business
A
not a capital asset
6
Q
Point of fact for sale of homes-
A
Don’t say Income in sale price, and loss on value of house- thats just dumb. We already accounted for it in GI AR-AB
