Gains | Losses | |
Stocks, held for more than 6 months | $100,000 | |
Bonds, held for more than 6 months | $5,000 | |
Housing development, held for more than 6 months | 400,000 | |
Branch office building owned and occupied by L, held for more than 6 months | 115,000 | |
Furniture and equipment used in the investment department, held for more than 6 months | 30,000 | |
Radio station, held for more than 6 months | 200,000 | |
Involuntary conversion of apartment building, held for more than 6 months | 7,000 |
The recognized gains and losses from the sale of the stocks, bonds, housing development, and radio station shall be treated as gains and losses from the sale of capital assets since such items are capital assets within the meaning of section 1221 (as modified by section 817(a)(2)). Accordingly, the provisions of section 1231 shall not apply to the sale of such capital assets. However, the provisions of section 1231 (as modified by section 817(a)(1)) shall apply to the sale of the branch office building and the furniture and equipment, and the apartment building involuntarily converted. Since the aggregate of the recognized losses ($115,000) exceeds the aggregate of the recognized gains ($37,000), the gains and losses are treated as ordinary gains and losses.
26 C.F.R. §1.817-2