Seattle Pacific University
Whatever gain exceeds the adjusted basis is ordinary gain, anything below that or equal to that is a capital gain. $200 gain from 1245 property, with a basis of §100. $100 is ordinary gain, and the other $100 is capital gain (1245 a 1). Losses are governed by §1231, this is hotchpot. If the capital gains exceed losses than everything is capital. ................
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