Gains on the sale of certain types of business assets, referred to as Section 1231 property, are always treated as capital gains.

Name: Gains on the sale of certain types of business assets, referred to as Section 1231 property, are always treated as capital gains.
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

Section 1231 gains can be treated as either capital gains or ordinary income depending on whether the aggregate of all Section 1231 gains and losses results in a net gain or loss for the tax year.

Gains on the Sale of Certain Types of Business Assets