Asked by matheus castro on Jun 17, 2024
Verified
To qualify as Section 1231 property,the property must be used in a taxpayer's trade or business and must be held for less than one year.
Section 1231
A tax provision that allows for the favorable tax treatment of gains on the sale or exchange of certain types of property used in a business.
Trade or Business
An activity carried out for the purpose of earning income or profit, involving regularity and continuity in operations.
- Distinguish between inventory and Section 1231 property within the realm of tax categorization.
Verified Answer
FK
fariana kashemJun 22, 2024
Final Answer :
False
Explanation :
To qualify as Section 1231 property, the property must be used in a taxpayer's trade or business, but it must be held for MORE than one year, not less than one year.
Learning Objectives
- Distinguish between inventory and Section 1231 property within the realm of tax categorization.
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