The sale of a business usually is not a sale of one asset. Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. When sold, these assets must be classified as capital assets, depreciable property used in the business, real property used in the business, or property held for sale to customers, such as inventory or stock in trade.
The gain or loss on each asset is figured separately.
This is because Chapter 11 debtors can sell assets under uniquely buyer-friendly conditions.
The part of any gain or loss from unrealized receivables or inventory items will be treated as ordinary gain or loss.
For more information, see Publication 541, Partnerships (PDF).
The sale of capital assets results in capital gain or loss.
The sale of real property or depreciable property used in the business and held longer than 1 year results in gain or loss from a section 1231 transaction.