Capital Assets — Related Issues (Portfolio 562)

Description

Capital Assets – Related Issues focuses its discussion on the following issues: (1) the “sale or exchange” requirement that is necessary in order for a capital asset to qualify for capital asset treatment under §1221; (2) the interpretation of the “property” requirement under §1221; (3) alternative characterizations of sales or exchanges of capital assets under other Code sections; (4) various judicial doctrines that may recharacterize gains or losses as arising or not arising, as applicable, from the sale or exchange of a capital asset; (5) specific issues involved in the sale of a business; (6) the computation and character of a capital gain or loss; and (7) issues related to the treatment of gain from the sale or exchange of qualified small business stock held by a noncorporate taxpayer for more than five years.

Table of Contents

I. The Sale or Exchange Requirement
II. The “Property” Requirement
III. Alternative Characterizations of Sales or Exchanges of Capital Assets
IV. Sale of a Business
V. Computation and Character of Capital Gain or Loss
VI. Qualified Small Business Stock