If realized gain from disposition of business equipment exceeds total depreciation or cost recovery,a portion of the gain will receive Sec.1231 treatment if the equipment's holding period is more than one year.

Question

Quizplus · Accepted Answer

This statement is true. If the realized gain from the disposition of business equipment exceeds the total depreciation or cost recovery, a portion of the gain will receive Sec.1231 treatment if the equipment's holding period is more than one year. If the equipment is held for less than one year, the gain will be treated as ordinary income.

If Realized Gain from Disposition of Business Equipment Exceeds Total