This module presents the income tax consequences of property transactions including the sale, exchange, or other disposition of property. Basis is covered first with a review of the basis of property acquired by purchase, gift, and from a decedent. Tax-deferred transactions are covered next with a review of like-kind exchanges, involuntary conversions, and the sale of a principal residence. Next, sales and exchanges of securities are reviewed as well as the treatment of losses and expenses incurred in transactions with related taxpayers. Finally, capital gains and losses, as well as gains and losses from business property including Sec. 1231 and depreciation recapture are reviewed. Not only is it important to determine the extent of gain or loss recognition, but it is also important to be able to determine whether the character of the recognized gain or loss is capital, Sec. 1231, or ordinary.
A. Sales and Other Dispositions
B. Capital Gains and Losses
C. Personal Casualty and Theft Gains and Losses
D. Gains and Losses on Business Property
Multiple-Choice Answers and Explanations