Identify the type(s) of gain or loss that would be recognized on the following asset sales as capital, Section 1231, ordinary, Section 1245 or Section 1250.
-Gain on the sale of a personal residence.
A)capital
B)Section 1234
C)ordinary
D)Section 1248
E)Section 1253

Question

Quizplus · Accepted Answer

The gain on the sale of a personal residence is typically treated as a capital gain for tax purposes. This is because personal residences are considered capital assets, and gains from their sale are subject to capital gains tax rates, subject to certain exclusions and conditions.

Identify the Type(s) of Gain or Loss That Would Be