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

question 43

Multiple Choice

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 2013.

• A)Long-term capital
• B)Short-term capital
• C)Collectible gain
• D)Section 1231
• E)Section 1245
• F)Section 1250
• G)Ordinary income/loss
• H)Nontaxable/nondeductible

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Definitions:

Burgess Shale

A Lagerstätte in Canada in which there is a wealth of preserved fossils from the Cambrian period.

Lagerstätte

Lagerstätte (plural, Lagerstätten) is a site with an abundant supply of unusually well-preserved fossils — often including soft tissues — from the same period of time.

Cambrian

A geological time period occurring approximately 541 million years ago, notable for the Cambrian Explosion, a significant increase in the diversity of life on Earth.

Oldest Vertebrate Trackways

The earliest known fossilized paths made by the locomotion of vertebrates, providing insights into prehistoric behavior and environments.