Section 1239 (relating to the sale of certain property between related taxpayers) does not apply unless the property:
A) Was depreciated by the transferor.
B) Is depreciable in the hands of the transferee.
C) Is a capital asset.
D) Is real property.
E) None of the above.

Question

Quizplus · Accepted Answer

Section 1239 applies to the sale of property between related taxpayers if the property is depreciable in the hands of the transferee. Therefore, choice B is the correct answer. Choices A, C, D, and E are incorrect because they do not accurately describe the conditions necessary for Section 1239 to apply.

Section 1239 (Relating to the Sale of Certain Property Between