Which of the following properties that was sold during January 2018 is Section 1231 property for Baylan Toy Manufacturing Corporation?
I.Automobile purchased in 2014.
II.Land used in the business since 2015.
III.Factory building purchased and placed into service in May 2017.
IV.Office building purchased and placed into service in June 2014.

Question

Which of the following properties that was sold during January 2018 is Section 1231 property for Baylan Toy Manufacturing Corporation?
I.Automobile purchased in 2014.
II.Land used in the business since 2015.
III.Factory building purchased and placed into service in May 2017.
IV.Office building purchased and placed into service in June 2014.
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Quizplus · Accepted Answer

Section 1231 property includes depreciable property and real property (like buildings and land) used in a trade or business and held for more than one year. Statements I (automobile), II (land), and IV (office building) meet these criteria. Statement III (factory building) does not qualify because it was not held for more than one year.

Which of the Following Properties That Was Sold During January