Which of the following properties that was sold during January 2016 is Section 1231 property for Baylan Toy Manufacturing Corporation?
I.Automobile purchased in 2012.
II.Land used in the business since 2013.
III.Factory building purchased and placed into service in May 2015.
IV.Office building purchased and placed into service in June 2012.

Question

Which of the following properties that was sold during January 2016 is Section 1231 property for Baylan Toy Manufacturing Corporation?
I.Automobile purchased in 2012.
II.Land used in the business since 2013.
III.Factory building purchased and placed into service in May 2015.
IV.Office building purchased and placed into service in June 2012.
​

Quizplus · Accepted Answer

Section 1231 property includes depreciable property and real estate used in a business and held for more than one year. The automobile (I), land (II), and office building (IV) meet these criteria. The factory building (III) does not qualify as it was held for less than a year.

Which of the Following Properties That Was Sold During January