Skip to content
Warren AI
Sign in
Income Tax Planning
Chapter 10: Basis Rules, Depreciation, and Asset Categorization/ORDINARY INCOME ASSETS: EXAMPLE 2
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 10: Basis Rules, Depreciation, and Asset Categorization

ORDINARY INCOME ASSETS: EXAMPLE 2

01.Core Concepts

Frank is an art dealer, and has galleries in New Orleans, New York, and San Diego. Frank recently purchased a pai nting by Wentworth and places it in his New Orleans studio for sale to his customers. Because the painting is being held for sale to customers in the ordinary course of business, it is inventory and therefore is an ordinary income asset. *Copyrights of music are treated as capital assets.