For livestock to be considered Sec.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 the IRS, cattle and horses must be held for at least 24 months from the date of acquisition to be considered Sec. 1231 property. This means that if the livestock is held for breeding, dairy, or draft purposes, any gains or losses from its sale will be treated as long-term capital gains or losses, which can have tax benefits.

For Livestock to Be Considered Sec.1231 Property