Assets eligible for preferential treatment under Section 1231 include
I.Certain assets held for less than a year.
II.Real estate used in a business held for more than a year.
III.Horses held for more than two years.
IV.Lumber held by a lumber store.

A)Only statement I is correct.
B)Statements II, III, and IV are correct.
C)Statements I, III, and IV are correct.
D)Statements II and III are correct.
E)Statements I, II, III, and IV are correct.

Question

Assets eligible for preferential treatment under Section 1231 include
I.Certain assets held for less than a year.
II.Real estate used in a business held for more than a year.
III.Horses held for more than two years.
IV.Lumber held by a lumber store.
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A)Only statement I is correct.
B)Statements II, III, and IV are correct.
C)Statements I, III, and IV are correct.
D)Statements II and III are correct.
E)Statements I, II, III, and IV are correct.

Quizplus · Accepted Answer

Only statement II and III are correct. Real estate used in a business must be held for more than a year to qualify for preferential treatment under Section 1231, and horses must be held for more than two years. Statement I is incorrect as assets held for less than a year are not eligible for Section 1231 treatment. Statement IV is also incorrect as lumber held by a lumber store may or may not qualify, depending on how it is used by the business.

Assets Eligible for Preferential Treatment Under Section 1231 Include