Classify the gain or loss on each of George's assets listed below using the following codes.Note: a code may be used once,more than once,or not at all.
-After using a house as his personal home for 20 years,George converts it in 2006 to an office building for use in his construction business.He sells the building at a $65,000 loss in 2017.

Question

Quizplus · Accepted Answer

The house that George converted to an office building falls under Section 1231, which deals with property used in business and held for more than one year. The loss from selling the building is also considered a loss under Section 1231, which means it can be treated as an ordinary loss and deducted against his income.

Classify the Gain or Loss on Each of George's Assets