If a taxpayer sells business realty that was depreciated using the straightline method, the entire gain is characterized as Section 1231 gain.

Question

Quizplus · Accepted Answer

The correct answer is false because the entire gain is not characterized as Section 1231 gain. Only the portion of the gain attributable to the depreciation taken is characterized as Section 1231 gain. The remaining portion of the gain is characterized as capital gain.

If a Taxpayer Sells Business Realty That Was Depreciated Using