I said in class that taxpayers want to classify everything that they can as Section 1231 property. Why do taxpayers prefer this type of property? a. Gains are considered ordinary; losses are considered ordinary b. Gains are considered capital; losses are considered capital c. Gains are considered ordinary; losses are considered capital d. Gains are considered capital; losses are considered ordinary Ordinary losses are limited to a $3,000 deduction per year unless there are other ordinary to offset. a. True b. False What types of property can be Section 1231 property? a. Investment Assets b. Personal Assets (business use) c. Real Assets d. Intangible Assets e. Only B & C Sarah purchased a machine last year for $50,000. She expensed the entire cost under 179. In 2016 she sells the computer for $58,000. What is the code section will this gain under? a. 1245 b. 1250 c. 1231 d. 1031 Larry originally bought a business-use machine for $55,000. His adjusted basis today is He sells the machine for $60,000. Larry has no prior 1231 transactions. How much of will be considered a long-term capital gain? a. $5,000 b. $20,000 c. $25,000 d. $12, 500 e. $2, 500