Basic Federal Income Taxation: Property Transactions: Capital Asset Identification

This lesson is best used after studying Federal Income Taxation: Property Transactions, in class. The lesson includes problem sets to work through, allowing you to apply Internal Revenue Code section 1221(a).

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Understand how § 1221(a) operates to distinguish non-capital assets from capital assets.
2. Acquire familiarity with multiple examples of non-capital and capital assets.
3. Understand that § 1221(a) applies only if the taxpayer holds "property."