Which of the following does not ultimately result in a capital gain or loss?
A)Sale of a personal use asset.
B)Sale of inventory.
C)Gain on equipment used in a trade or business and held for more than one year, if it is the only asset sale during the year.
D)Sale of capital stock in another company.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The sale of inventory is considered part of ordinary business operations and results in ordinary income or loss, not a capital gain or loss. Capital gains or losses are typically realized from the sale of capital assets, not inventory.

Which of the Following Does Not Ultimately Result in a Capital