This course covers the income tax treatment of gains and losses resulting from disposition of various kinds of property by different taxpayers. It considers the mechanics of computing gain and loss, the definition of a capital asset, determination of basis and holding periods, recognition or nonrecognition of gain or loss, and tax consequences of dispositions of special kinds of property. Cost recovery deductions on depreciable or amortizable assets, as well as depreciation recapture, are also discussed. In addition, the course provides an introduction to the at-risk and passive activity rules, which limit losses from certain income-producing activities.

Prerequisites: TAXN6100