Which of the following trade or business assets are Section 1245 properties?
I.Racehorses.
II.Livestock held for breeding purposes
III.Manufacturing equipment.
IV.Residential rental property placed in service in 2008.

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

Question

Which of the following trade or business assets are Section 1245 properties?
I.Racehorses.
II.Livestock held for breeding purposes
III.Manufacturing equipment.
IV.Residential rental property placed in service in 2008.
​
A)Only statement I is correct.
B)Statements II and IV are correct.
C)Statements I, II, and III are correct.
D)Statements I and IV are correct.
E)Statements I, II, III, and IV are correct.

Quizplus · Accepted Answer

Section 1245 property includes any depreciable property that is or has been subject to an allowance for depreciation and is either personal property, other tangible property (except buildings and their structural components) used as an integral part of manufacturing, production, or extraction or as a research facility, or certain other tangible property used in a business. This includes manufacturing equipment (III), racehorses (I), and livestock held for breeding purposes (II). Residential rental property (IV) does not qualify as Section 1245 property because it is generally considered Section 1250 property.

Which of the Following Trade or Business Assets Are Section