Which of the following transactions or events is treated as a Sec. 1231 gain or​ loss? All assets are held for more than one year. ​(Complete all input fields. If the transaction or event is not a Sec. 1231​ gain/loss, select​ "Not applicable".)   Transactions or events Sec. 1231 a. Theft of uninsured diamond ring, with an $800 basis and a $1,000 FMV. Not applicable b. Gain due to condemnation of land used in business. Sec. 1231 gain c. Loss on the sale of a warehouse. Sec. 1231 loss d. Gain of $4,000 on the sale of equipment. Depreciation deductions allowed amount to $10,000. Sec. 1231 gain

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.