Net gain is characterized as ordinary
to the extent of uncaptured net section
losses in the preceding tax years
ronce a priori year net section h loss
recaptured s ordinary income, it can no la
recaptured in the future
Any remaining aet section gaing oftter
applying the lookback rote is treated as
sapital gaint
Non sale dispositions
The tax code provides for special rules for as:
are disposed in a transaction other than a sal
exchange, including:
disposition by abndonment
worthless securities
foreclosure
casualty and theft
Disposition by abandonment
taxpayer may ahme onment lonoitibba
In which of the following situations is a loss always treated as ordinary?
When a machine becomes worthless
When a property subject to nonrecourse debt is foreclosed
When a stock becomes worthless
When a property subject to recourse debt is foreclosed
