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:

Followers

Individuals who align themselves with a leader or group, often supporting and being influenced by the leader's actions and decisions.

Powerful

Having great influence, authority, or force over others or situations.

Leaders

Individuals who guide, influence, or direct others within an organization or group to achieve collective goals.

Followers

Individuals who support and are guided by a leader, often contributing to the leaders' vision and goals through their cooperation and efforts.