Question: What is the difference between ordinary, capital, and section 1231 assets? When an individual owns a home for personal use or owns assets for investments

What is the difference between ordinary, capital, and section 1231 assets?

When an individual owns a home for personal use or owns assets for investments or business use, these assets can be characterized as personal assets, capital assets, or Section 1231 assets.

  1. Which of the three characterizations is most favorable to the taxpayer, and why?

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