The sale of machinery at a loss that was used in a trade or business and held for more than one year results in the following type of loss?
A) Capital.
B) §291.
C) §1231.
D) §1245.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Assets used in a trade or business and held for more than one year are §1231 assets. Losses recognized do not require depreciation recapture.

The Sale of Machinery at a Loss That Was Used