Which one of the following is Section 1231 property?
A)Accounts receivable.
B)Copyright owned by an author.
C)Inventory.
D)A building used in a trade or business.

Question

Quizplus · Accepted Answer

Section 1231 property includes depreciable tangible property used in a trade or business, real property used in a trade or business, and some intangible property such as patents and goodwill. A building used in a trade or business is an example of depreciable tangible property and therefore qualifies as Section 1231 property. Accounts receivable and inventory are not depreciable and copyrights are considered intangible assets not eligible for Section 1231 treatment.

Which One of the Following Is Section 1231 Property