Classify the gain or loss on each of George's assets listed below using the following codes. Note: a code may be used once, more than once, or not at all.
-George sells land purchased in 1989 that he used to park construction equipment at a gain of $16,500.
A)Long-term capital
B)Short-term capital
C)Collectible gain
D)Section 1231
E)Section 1245
F)Section 1250
G)Ordinary income/loss
H)Nontaxable/nondeductible

Question

Quizplus · Accepted Answer

The land used for business purposes and held for more than a year qualifies as a Section 1231 asset, resulting in a Section 1231 gain.

Classify the Gain or Loss on Each of George's Assets