TN 9 (02-98)
RS 01803.400 Gain or Loss from Sale of Capital Assets and Similar Transactions
Section 404.1084 of Regulation No. 4 Social Security Act
1. General Rule
In computing NESE, exclude gain or loss from the:
sale or exchange of a capital asset;
cutting of timber or disposal of timber, coal or iron ore if section 631 of the IRC applies;
sale or other disposition of property that is not stock in trade or held primarily for sale to customers in the ordinary course of a trade or business.
2. Options and Commodities Dealers
Options dealers and commodities dealers compute their NESE including any gains or losses on capital assets acquired in the normal course of their trading.