When a farm or ranch sells assets, the gain rarely has a single character. Equipment, breeding livestock, land, and buildings can produce ordinary income, long-term capital gain, or both — from the same sale, on the same form — and which portion falls where depends on facts that are easy to misread: whether livestock has been held long enough, whether a prior-year loss is sitting in a five-year lookback, or whether the asset that looks like a building is legally treated as personal property. This course covers the classification and character rules that govern Form 4797 from the first question — does this asset belong here at all? — through the full §1231 netting process, using farm and ranch scenarios throughout.