Describe various types of transactions that an individual or business entity may be involved in. For each one, indicate the appropriate tax treatment. A tax treatment may be used once, more than once, or not at all. Note: The answer to 4 is G (if accelerated depreciation rules applied to real property, gain due to depreciation in excess of S/L depreciation would be Section 125 gain. A. Long-term capital gain
B. Long-term capital loss
C. Short-term capital gain
D. Short-term capital loss
E. Section 1231 gain or loss
F. Section 1245 gain
G. Section 1250 gain
H. Ordinary Income or loss
I. Not deductible G
1 Gain from sale of stock held 10 months
2 Results form the sale of assets used in a trade or business for more than a year, such as land, buildings, or equipment, which are not
held as inventory
3 Portion of a gain on the sale of a machine that is taxed as ordinary income
4 Results from recapture of depreciation on real property
5 Gains are long-term capital gains and losses are ordinary if held for more than one year
6 Gain on sale of personal jewelry held long term
7 Loss on the sale of the personal residence lived in by the taxpayer and held long term
8 Results from recapture of depreciation on personal property
9 Gambling losses in a period in which there were no gambling winnings
10 Difference between sales price and cost of goods held as inventory for sale in the ordinary course of business held 13 months
11 Results from the sale of assets, such as land, buildings, or equipment, used in a trade or business for one year or less
12 Excess of sales price over tax basis of a car inherited 3 months prior to sale