Capital Gains and Losses: Basic Elements


Summary

This practice note discusses the elements that are required for a sale of property to constitute a capital transaction. This practice note provides valuable best practices for your client because it analyzes how to properly classify property items as capital assets. It also reviews the requirements for a transaction to qualify as a sale or exchange. This practice note also examines the different rules for individuals and corporations governing the carryover of unused capital losses. Finally, the practice note provides a review of the IRC Sections which address the rules governing characterization of property as capital assets and the conveyance of such assets, including I.R.C. Sections 1221 and 1222.