Section 1250 Property: Definition23. Section 1250 property is depreciable real property that is not Section 1245 property. It, like Section 1245 property, is a subcategory of depreciable Section 1231 property. It consists mainly of buildings and their structural components as well as other depreciable real property. It also includes intangible real property such as leaseholds of land or Section 1250 property. Answers to ProblemsCapital Assets: Definition30. (a), (b), (d) and (g) are capital assets. A gold ring, a personal automobile, shares of stock, and a home are not excluded from the definition of a capital asset. Accounts receivable, buildings, business cars and trucks, and copyrights are all excluded from the capital asset definition. Holding Period: Like-Kind Exchanges34. In a nontaxable exchange such as Jim had where he uses the basis of $40,000 that he had in his old asset as the basis of his new asset, the holding period begins with the day following the date of acquisition of the old property, or November 18, 2014. In other words, the holding period of the old asset is tacked on.
37. a. Ed has a net short-term capital loss of $750 ($1,500 - $2,250) and a net long-term capital gain of $3,000 ($5,500 - $2,500). The net capital gain is $2,250 ($3,000 - $750), which is taxed up to a maximum rate of 15/20 percent.