For livestock to be considered Section 1231 property,
A)the livestock must be held for draft,breeding or dairy purposes,but not for sport.
B)cattle and horses must be held for at least 12 months from the date of acquisition.
C)cattle and horses must be held for at least 24 months from the date of acquisition.
D)livestock other than cattle and horses must be held for at least 24 months from the date of acquisition.

Question

Quizplus · Accepted Answer

According to IRS guidelines, to be considered Section 1231 property, cattle and horses must be held for at least 24 months from the date of acquisition. This means that the correct choice is C. The other choices are incorrect because they either do not specify the required holding period or specify an incorrect holding period.

For Livestock to Be Considered Section 1231 Property