Asked by Elijah Boyce on Apr 27, 2024
Verified
A capital asset includes all of the following except:
A) A taxpayer's home.
B) Inherited property.
C) Real estate used in the taxpayer's trade or business.
D) Real estate held for investment.
Capital Asset
A long-term asset such as equipment, real estate, or securities, which is not easily sold in the regular course of a business's operations for cash.
Taxpayer's Home
The primary place of abode of a taxpayer that determines tax liabilities and benefits.
- Identify the various tax treatments for different types of assets.
Verified Answer
TD
Talayah DolemanMay 03, 2024
Final Answer :
C
Explanation :
A capital asset includes property such as a taxpayer's home, inherited property, and real estate held for investment. However, real estate used in the taxpayer's trade or business is not considered a capital asset; instead, it is typically classified as a business asset, subject to different tax treatment.
Learning Objectives
- Identify the various tax treatments for different types of assets.