Mr. Jason realized a gain on sale of a residential apartment complex that he had placed in service in 1994. Accumulated MACRS depreciation on the complex was $311,800. The entire gain is characterized as Section 1231 gain.

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Section 1231 gain applies to the sale of property used in a trade or business or as a rental property. Since the residential apartment complex was placed in service in 1994 and was subject to MACRS depreciation, the gain on its sale would be characterized as Section 1231 gain.

Mr Jason Realized a Gain on Sale of a Residential