Which of the following is not considered a capital asset? a personal residence o
ID: 2726094 • Letter: W
Question
Which of the following is not considered a capital asset?
a personal residence owned by an individual not in the business of buying and selling residential houses
mutual fund shares held by an individual not in the business of buying and selling mutual funds
a rare edition of a book held by an individual who is not a dealer of rare items
stock in the trade of the taxpayer that would be properly classified as inventory
A Section 1231 asset is:
depreciable or real property that is used in a trade or business and is held for more than one year
depreciable or real property that is not used in a trade or business
intangible personal property
property the title of which is held jointly by two or more persons
a.a personal residence owned by an individual not in the business of buying and selling residential houses
b.mutual fund shares held by an individual not in the business of buying and selling mutual funds
c.a rare edition of a book held by an individual who is not a dealer of rare items
d.stock in the trade of the taxpayer that would be properly classified as inventory
A Section 1231 asset is:
a.depreciable or real property that is used in a trade or business and is held for more than one year
b.depreciable or real property that is not used in a trade or business
c.intangible personal property
d.property the title of which is held jointly by two or more persons
Explanation / Answer
All kind of properties including plant, machineries, land, building, business, personal, tangible, intangible, goodwill, patents, shares debentures, mutual funds and bonds are capital asset. Working inventories are not capital assets.
Propeties of a) is personal house include in capital assets, Properties b) mutual funds include in capital assets. c) intangiable personal property include in capital assets. d) Inventory is not included in capital assets.
Section 1231 assets
a) Property more than one year include in 1231 assets It is used for business purposses.
b) Property case not included in1231 assets. Thisproperty is not traded for the business.
c)Intangable personal property not included in 1231 assets.
d) Property other than business not included in this secction.
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