What does it mean to characterize a gain or loss why is, Taxation

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What does it mean to characterize a gain or loss why is

1. What does it mean to characterize a gain or loss? Why is characterizing a gain or loss important?

2. Explain the difference between ordinary, capital, and §1231 assets.

3. Discuss the reasons why individuals generally prefer capital gains over ordinary gains. Explain why corporate taxpayers might prefer capital gains over ordinary gains.

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Taxation: What does it mean to characterize a gain or loss why is

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Taxation: What does it mean to characterize a gain or loss why is

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