A business taxpayer sells inventory for $40,000.The adjusted basis of the property is $58,000 at the time of the sale and the inventory had been held more than one year. The taxpayer has:

Question

Quizplus · Accepted Answer

Since the sales price is less than the adjusted basis, the taxpayer incurs a loss. Since it is inventory held for business purposes, the loss is an ordinary loss, not a capital loss.

A Business Taxpayer Sells Inventory for $40,000