Which of the following results in an ordinary gain or loss?
A)Sale of a machine at a gain.
B)Sale of stock held for investment.
C)Sale of a §1231 asset.
D)Sale of inventory.
E)None of thesE.Inventory is always an ordinary asset.Sale of a §1231 asset can generate either ordinary gain or capital loss.

Question

Quizplus · Accepted Answer

The sale of inventory results in an ordinary gain or loss. The other options can potentially result in capital gains or losses, depending on various factors such as holding period and intention of the taxpayer.

Which of the Following Results in an Ordinary Gain or Loss