If the accumulated depreciation on business equipment held longer than one year exceeds realized gain on the sale of the equipment,all of the realized gain will be treated as Sec.1231 gain.

Question

Quizplus · Accepted Answer

The realized gain up to the amount of accumulated depreciation is treated as ordinary income under Sec. 1245, not Sec. 1231 gain. Only the gain exceeding the accumulated depreciation is treated as Sec. 1231 gain.

If the Accumulated Depreciation on Business Equipment Held Longer Than