ACC 522 Chapter Notes - Chapter 8: Investment, Ordinary Income, Mutual Fund
Document Summary
Acc 522 chapter 8 notes: gains and losses on disposition of capital property capital gains. Capital gain (capital loss) the gain (or loss) realized on the disposition of capital property. In the context of capital property: a benefit refers to both direct and indirect benefits achieved from the use of the property, these benefits need not be financial in nature. The general definition of capital gains/losses is subjective because it is based upon the intended purpose of the property acquisition, rather than on the actual results achieved. Key - establishing the intended purpose: definition does not require that it be held for the long-term or, that it must provide a benefit. nature of the asset is not relevant. Property acquired for the purpose of resale at a profit is classified as inventory. Its disposition results in business income or loss. Property acquired for the purpose of providing the owner with a long-term or enduring benefit is classified as capital property.
