Basic Federal Income Taxation: Property Transactions: Section 1231 Mechanics

This lesson is best used after studying Federal Income Taxation: Property Transactions, in class. The lesson includes problem sets to work through, allowing you to apply the Code and Regs. to a variety of situations involving Internal Revenue Code section 1231 mechanics.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Identify which gains and losses are included in the § 1231 hotchpot.
2. Distinguish between the § 1231(a)(4)(C) firepot and the § 1231 hotchpot.
3. Evaluate which casualty and theft gains and losses must be analyzed through the § 1231(c)(4)(C) firepot.
4. Discuss the effect of the § 1231 firepot and hotchpot on the character of § 1231 gains and losses.