The sale of land held for investment results in which of the following types of gain or loss?
A)Capital.
B)Ordinary.
C)§1231.
D)§1245.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

When land held for investment is sold, the resulting gain or loss is generally considered a capital gain or loss. This is because the land is not considered to be held in the ordinary course of business, and therefore does not generate ordinary income or losses. The specific rules regarding the taxation of capital gains and losses will depend on various factors, such as the holding period of the land and the individual's tax bracket, among others.

The Sale of Land Held for Investment Results in Which