1. Asset Classification How are assets classified to
determine their tax treatment on disposition? What are other ways to classify
assets? What events qualify as asset dispositions?
2. Amount Realized
How is the amount realized on a sale or exchange determined?
3. Realized vs. Recognized Gain Explain the difference
between a realized gain and a recognized gain.
4. Asset Classification What type of assets are Section 1231
assets? What type of assets are capital assets? What type of assets are
ordinary income assets? Give several examples of each type of asset.
5. Recapture Why do taxpayers have to recapture depreciation
on depreciable assets sold at a gain? To which assets do the Section 1245 and
1250 recapture provisions apply?
6. Section 1231 Look-Back Explain the look-back procedure
for Section 1231 assets. Why did this particular provision evolve?
7. Section 291 Recapture What is Section 291 recapture?
Compare this to unrecaptured Section 1250 gains.
8. Section 1231 Netting How are net losses treated in the
Section 1231 netting process? How is a net Section 1231 gain taxed?
9. Capital Assets How are capital assets classified as
short-term and long-term? How are long-term gains and losses and short-term
gains and losses treated in the capital asset netting process?
10. Capital Gains How are net short-term capital gains of
individuals treated? How are net short-term capital gains of corporations