Basic Federal Income Taxation: Property Transactions: Capital Gain Mechanics

The CALI website will be unavailable beginning Saturday December 27, 2025 at 8:00 AM ET continuing through no later than 8:00 AM ET on Tuesday December 30, 2025

We are going to make necessary and critical updates to our systems during this timeframe. While we anticipate using only a portion of the time, members should be prepared for the site being offline for the full 3 days. During this maintenance window www.cali.org and other sites including Classcaster, Lawbooks, and our authoring systems will be unavailable. 

 

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 capital gain mechanics under Internal Revenue Code § 1222.

Learning Outcomes
On completion of the lesson, the student will be able to:
1. Explain how to calculate "net capital gain."
2. Explain how to calculate "capital gain net income."
3. Explain the differences between gross capital gain, net capital gain, and capital gain net income.

15 minutes

Basic Federal Income Taxation: Property Transactions: Capital Gain Mechanics
by
James Edward Maule
Professor of Law
Villanova University School of Law


Charlene D. Luke
Professor and Associate Dean for Tax Programs
University of Florida Levin College of Law



Copyright 2005, 2018 CALI
All Rights Reserved
Copyright 1988-2001 James Edward Maule

CALI Author Copyright 1999-2019 Center for Computer-Assisted Legal Instruction.

This program is distributed to licensees for use in accord with an annual membership agreement for 2018-2019. Use after the expiration of the license period is prohibited.

Version 09/18/2018