Section 1231 property is:
A)Property used in a trade or business that is subject to depreciation and is held for more than one year.
B)Property used in a trade or business that may or may not be subject to depreciation and held for less than one year.
C)All property used in a trade or business regardless of how long the asset is held.
D)Property used in a trade or business that may or may not be subject to depreciation and is held for more than one year.

Question

Quizplus · Accepted Answer

Section 1231 property is defined as property used in a trade or business that may or may not be subject to depreciation and is held for more than one year. This includes assets such as equipment, vehicles, and real estate. The holding period requirement is important because it distinguishes Section 1231 property from ordinary income property, which is held for less than one year and subject to higher tax rates.

Section 1231 Property Is