Explain what lincoln accountant means by best of both world

Reference no: EM13906459

Lincoln has used a piece of land in her business for the past five years. The land qualifies as §1231 property. It is unclear whether Lincoln will have to recognize a gain or loss when she eventually sells the asset. She asks her accountant how the gain or loss would be characterized if she decides to sell. Her accountant said that selling §1231 assets gives sellers "the best of both worlds." Explain what her accountant means by "the best of both worlds."

Reference no: EM13906459

Questions Cloud

Fix the error in personal names : Write a program which will get the personal names from the user and store them in an array list called "personalNames". If there is any other character besides "a-z" or "A-Z" in a record, those should be flagged as ill-defined data.

Why gains from depreciable property sold to related taxpayer : Explain why gains from depreciable property sold to a related taxpayer are treated as ordinary income under §1239.

Explain congresss rationale for depreciation recapture : Explain Congress's rationale for depreciation recapture. Compare and contrast §1245 recapture and §1250 recapture. Why is depreciation recapture not required when assets are sold at a loss?

What was the highest score earned on the exam : For a particular sample of 63 scores on a psychology exam, the following results were obtained. What score was earned by more students than any other score? Why? What was the highest score earned on the exam? What was the lowest score earned on t..

Explain what lincoln accountant means by best of both world : Her accountant said that selling §1231 assets gives sellers "the best of both worlds." Explain what her accountant means by "the best of both worlds."

Program to read the names of users : Write a program to read the names of users and number of units consumed and print out the charges with names. Use the concepts of classes.

Describe the circumstances in which the sale of the land : Describe the circumstances in which sale of the land would generate §1231 gain or loss, ordinary gain or loss, or capital gain or loss. Also, describe circumstances where Dakota would not be allowed to deduct a loss on the sale.

Set of positive integers and outputs : Write a program that reads in a set of positive integers and outputs how many times a particular number appears in the list. You may assume that the data set has at most 100 numbers and -999 marks the end of the input data.

What does it mean to characterize a gain or loss : What does it mean to characterize a gain or loss? Why is characterizing a gain or loss important? Explain the difference between ordinary, capital, and §1231 assets.

User Account

All Pages