Capital vs. Ordinary loss

In 2001, I bought a business and made improvements for a total cost of $60000. I sold the business in the same year for $6000. Is this loss classified as capital or ordinary? Is it Part I or Part II?

The tax aspects of this depend on several factors, including the form of the business (proprietorship, corporation, LLC, etc.); the nature of the assets (inventory, accounts receivable, fixtures, good-will, etc.). You need a tax professional to handle this property.