Digestion+of+1221

Digestion of 1221 - Reference 1221 for clarification

As used in Subtitle A:
 * § 1221 Definition of "Capital Asset" **

Stock in Trade = brick layer the brick is

Definition by exclusion: **A Capital Asset is** - **Not** stock in trade of the taxpayer; not the inventory of his warehouse if on hand at the close of the year. - **Not** property used in his trade or business which is subject to §167 (depreciation?) - **Not** a copyright, literary, musical or artistic composition created by the taxpayer. - **Not** accounts or notes receivable acquired in the ordinary course of trade. - **Not** a publication of the US Gov’t. - **Not** a commodity derivative financial instrument held by a commodities derivative dealer UNLESS (1221(a)(6)(A) and (B). - **Not** a hedging transaction which is identified as such - **Not** a supply of a type regularly used or consumed by the taxpayer in his trade.
 * (Can be Tangible or intangible items) (Whether in the trade of the taxpayer's business or not)**