Before the tax implications of asset sales can be determined,which of the following must be determined?
A)the length of time the taxpayer owned the property.
B)assets must be classified as either personal,trade or business,or investment assets.
C)whether the assets are subject to depreciation.
D)all of these.

Question

Quizplus · Accepted Answer

All of these factors are important in determining the tax implications of asset sales. The length of time the taxpayer owned the property will impact whether the sale qualifies for long-term capital gains treatment. An asset's classification as personal, trade or business, or investment will impact the tax rate applied to the sale. Whether the asset is subject to depreciation will have an impact on the amount of gain or loss recognized on the sale. Therefore, all three factors must be considered to determine the tax implications of asset sales.

Before the Tax Implications of Asset Sales Can Be Determined,which