Mr. Jason realized a gain on sale of a residential apartment complex that he had placed in service in 1993. Accumulated MACRS depreciation on the complex was $311,800. The entire gain is characterized as Section 1231 gain.

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Since the gain is characterized as Section 1231 gain, it means that it is related to the sale of property used in a trade or business for more than one year. Since the residential apartment complex was placed in service in 1993 and had accumulated MACRS depreciation of $311,800, it meets the criteria for Section 1231 gain.

Mr Jason Realized a Gain on Sale of a Residential