What is the character of land used in an active trade or business for two years?
A)Capital.
B)Ordinary.
C)§1231.
D)Investment.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Section 1231 of the U.S. Internal Revenue Code classifies property used in a trade or business and held for more than one year as §1231 property. This classification allows for the favorable treatment of gains, where they are taxed at capital gains rates, and losses, which can be deducted as ordinary losses.

What Is the Character of Land Used in an Active