Fed Tax - Capital Gain/ Loss Forum

[acg]

Exam tomorrow and I cannot seem to grasp this concept. Can anyone explain how to approach a capital gain/ loss question on an exam?

[3|ink]

What about it don't you understand? When is gain capital instead of ordinary?

[alicrimson]

Or the whole netting, 1250, collectible garbage? If it's the netting and pulling apart of things, what specifically is your issue?

If it's whether or not it's capital or not, ask yourself if it's property. Then, ask yourself if it is not on the 1221 list? If your answer is yes to both, you potentially have capital asset. If there's a loss, think about whether or not there is a code provision that allows it to be one.

[acg]

thanks! luckily, it was barely covered on my final (i think). . .

[lawyerdown27]

thanks! luckily, it was barely covered on my final (i think). . .

Tell me about it. After I turned mine in, I realized I didn't have a 1231 hotchpot anywhere and freaked because my prof covered it religiously. Thank god I was right.