Build a gain-and-loss framework from the sale papers
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Build a table of each asset, the money and other property the papers show as received, and the basis figure the lawyer supplies. Flag an asset the papers describe as inventory, as held for sale to customers, or as depreciable or real property used in the business. Do not compute a tax.
- What the lawyer must review
- 26 U.S.C. § 1001: gain on a sale or other disposition is the excess of the amount realized over the adjusted basis provided in section 1011, and loss is the excess of that adjusted basis over the amount realized. The amount realized is any money received plus the fair market value of other property received. You open section 1011 before a basis figure is treated as the adjusted basis, and you read the rest of section 1001(b). 26 U.S.C. § 1221: a capital asset is property held by the taxpayer, whether or not connected with a trade or business, but does not include inventory or property held primarily for sale to customers in the ordinary course, or property used in the trade or business of a character subject to the allowance for depreciation, or real property used in the trade or business. Further exclusions follow in the section. You decide the character of the gain. Do not state a rate or a holding period.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.