Personal or real property assets used in trade or business that are held for more than one year are what type of asset?

Question

Quizplus · Accepted Answer

Personal or real property assets used in trade or business that are held for more than one year are Section 1231 assets. These assets include depreciable tangible and intangible personal property, as well as real property that is depreciable or not. Section 1231 assets do not include inventory. If a taxpayer has a Section 1231 net gain in the current year but had a Section 1231 net loss in any of the five previous years, the taxpayer must recapture the previous year's loss by treating an equivalent amount of current year gain as ordinary income.

Personal or Real Property Assets Used in Trade or Business