Dealing with properties 2

For questions 1- 5,Classify the following as ordinary or capital assets:

1. Real property held for sale in the ordinary course of trade or business by a real estate company

• ordinary assets

• capital assets

2.) Interest in partnership and joint venture

• ordinary assets

• capital assets

3.) Real property held as investment by a real estate company

• Ordinary assets

• capital assets

4.) Stock and securities held by taxpayers as investment

• ordinary assets

• capital assets

5.Parking space for lease

• ordinary assets

• capital assets

The amount of capital gains and losses will depend on the length of time the asset was held by the individual taxpayer , if that is more than 12 months 100 % recognition shall apply.

• True

• False

7.If an individual taxpayer sustains in any taxable year a net capital loss such loss shall be treated in the succeeding year as a short term capital loss. Meaning, it can be deducted against net capital loss in the year immediately following the year when a net capital loss was incurred.

• True

• False

Gains or losses from dealings in property refer to the difference between the amount of value received by the taxpayer over the determined value of the property he has disposed of arising from sale, and/or exchange of assets

• True

• False

Gain realized from the sale or exchange of ordinary asset including gains from performance of services and business

• Ordinary loss

• Capital gain

• capital loss

• ordinary gain

_________________ is a Loss from sale, exchange, or other disposition of capital asset. ( write your answer in lower case)