Which of the following examples of business use property is not eligible for sec

Question

Which of the following examples of business use property is not eligible for section 1231 treatment when sold at a gain? Sale of land held for three years; net gain from a casualty gain on a dump truck held for two years; sale of a leasehold held for more than a year; sale of dairy cattle held for 14 months. Which of the following examples of business use property is not eligible for section 1231 treatment when sold at a gain? Sale of land held for three years; net gain from a casualty gain on a dump truck held for two years; sale of a leasehold held for more than a year; sale of dairy cattle held for 14 months. Which of the following examples of business use property is not eligible for section 1231 treatment when sold at a gain? Sale of land held for three years; net gain from a casualty gain on a dump truck held for two years; sale of a leasehold held for more than a year; sale of dairy cattle held for 14 months.

Explanation / Answer

Section 1231 if IRS deal with gain or loss from sale of depreciable assets that are use in trade. From Given option Land is not depreciable assets and also it is not mention that land is use fro any trade busienss. So, Sale of land held for three years is not eligible for section 1231 treatment when sold at a gain.

Option (A) is correct answer.

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