Why did Congress establish favorable treatment for 1231 assets?
A)to encourage the mobility of capital
B)to allow a larger deduction for losses
C)to help business owners replace assets which had declined in value
D)all of the above

Question

Quizplus · Accepted Answer

Congress established favorable treatment for 1231 assets to encourage the mobility of capital, allow a larger deduction for losses, and help business owners replace assets which had declined in value. The favorable treatment can also help stimulate economic growth by providing incentives for businesses to invest in new assets.

Why Did Congress Establish Favorable Treatment for 1231 Assets