A business taxpayer sells depreciable business property with an adjusted basis of $40,000 for $32,000. The taxpayer held the property for more than a year. The taxpayer has an $8,000 capital loss.

Question

Quizplus · Accepted Answer

The $8,000 loss is an ordinary loss, not a capital loss, because the property is depreciable business property, which is subject to Section 1231 rules.

A Business Taxpayer Sells Depreciable Business Property with an Adjusted