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    What constitutes a sale, worthless security, 1244 stock

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    An individual taxpayer sells some used assets in a garage sale. Why are none of the proceeds taxable in most situations?

    What usually constitutes evidence of a "sale" of property for tax purposes?

    What is the difference between a "worthless security" and "1244 stock"?

    How is it possible to have a casualty gain from the disposition of depreciable business property held more than a year? Is the gain initially a 1231 gain?

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    https://brainmass.com/business/accounting/questions-regarding-accounting-practices-445052

    Solution Preview

    The garage sale items are not taxable because first they are usually sold at a loss (compared to their original purchase price) and second, the loss is a personal loss and not deductible. So no gain, and no loss.

    Although there are differences for various types of property, generally evidence of sale of a property can include:

    1. Transfer of title for personal property such as vehicles
    2. Transfer deed for real ...

    Solution Summary

    This solution answers various questions on accounting practices, such as what constitutes evidence of a property sale, the difference between worthless security and 1244 stock, and how to have a casualty gain from the disposition of depreciable business property.

    $2.19

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