IRC §1221 "capital asset" definition
Nov 13, 2014 by Vahid Dejwakh

Rule

A capital asset is property held by the taxpayer, except for inventory or stock in trade of the taxpayer or property held by the taxpayer primarily for resale

Analysis and Discussion

Property that is held within the line of business of the taxpayer, for the primary purpose of resale, is just inventory taxed as ordinary income and not capital gains

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