For a business,Sec.1231 property does not include
A)timber,coal,or domestic iron ore.
B)inventory purchased 24 months ago.
C)an office building purchased five years ago.
D)land used in the business that was purchased two years ago.

Question

Quizplus · Accepted Answer

Sec.1231 property includes tangible property used in a trade or business and held for more than one year. However, inventory purchased within the last 24 months is not considered Sec.1231 property. Therefore, choice B is not included as Sec.1231 property. Choices A, C, and D are all potential examples of Sec.1231 property.

For a Business,Sec.1231 Property Does Not Include