Amount and Character of Gains and Losses on Asset Disposition and Netting Process

Free CPA TCP (Tax Compliance & Planning) lesson in Property Transactions. 18 min read, ~2,668 words.

Section 1231 gains net against Section 1231 losses; net gain = long-term capital gain, net loss = ordinary loss (best of both worlds). Section 1245 recaptures ALL depreciation on personal property as ordinary income before any Section 1231 treatment applies. Section 1250 recaptures only EXCESS depreciation over straight-line as ordinary...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• IV.B1

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