Gain recognized on the sale or exchange of property between related parties is capital if the property is subject to depreciation in the hands of the transferee.

Question

Quizplus · Accepted Answer

Gain recognized on the sale or exchange of property between related parties is generally treated as ordinary income if the property is subject to depreciation in the hands of the transferee, as per the Internal Revenue Code Section 1239.

Gain Recognized on the Sale or Exchange of Property Between