A taxpayer has a gain on Sec.1245 property.None of the gain will be treated as Sec.1231 gain unless the sale price exceeds the original cost.

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This statement is true. Sec.1245 property includes certain types of personal property, and any gain realized on the sale of Sec.1245 property is generally treated as ordinary income rather than capital gain. However, if the sale price exceeds the original cost of the Sec.1245 property, any excess gain may be treated as Sec.1231 gain, which is preferentially taxed as long-term capital gain.

A Taxpayer Has a Gain on Sec