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.
-Loss on the sale of municipal bonds by a corporation.
A)capital
B)Section 1237
C)ordinary
D)Section 1251
E)Section 1256

Question

Quizplus · Accepted Answer

The loss on the sale of municipal bonds by a corporation is considered a capital loss because municipal bonds are capital assets, and losses from their sale are treated as capital losses under the tax code.

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