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 factoring of receivables.
A)capital
B)Section 1239
C)ordinary
D)Section 1253
E)Section 1258

Question

Quizplus · Accepted Answer

Loss on the factoring of receivables is considered ordinary loss because it arises from the normal operations of a business, specifically from the sale or transfer of accounts receivable, which is a common business activity.

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