Recognized gains and losses must be properly classified.Proper classification depends upon:

Question

Quizplus · Accepted Answer

The tax status of the property and the holding period of the property are both factors that determine the proper classification of recognized gains and losses. Therefore, choice D ("a. and c.") is the best answer. The type of transferor and transferee is not a determining factor in classifying recognized gains and losses, so choice B is incorrect. Choice A and E are also incorrect as they do not provide a complete or accurate answer.

Recognized Gains and Losses Must Be Properly Classified