The sale of machinery at a loss that was used in a trade or business and held for more than one year results in the following type of loss?

Question

Quizplus · Accepted Answer

The sale of machinery used in a trade or business and held for more than one year results in a §1231 loss. This type of loss can be used to offset other gains or losses from other §1231 transactions, and any remaining net §1231 loss can be treated as an ordinary loss.

The Sale of Machinery at a Loss That Was Used