The sale of computer equipment used in a trade or business for 9 months results in the following type of gain or loss?
A) Ordinary.
B) §1231.
C) §1245.
D) Capital.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The sale of computer equipment used in a trade or business for less than a year results in an ordinary gain or loss, as it does not qualify for §1231 treatment, which requires a holding period of more than one year.

The Sale of Computer Equipment Used in a Trade or Business