Which one of the following is Section 1231 property?
A)Copyright owned by an author.
B)Accounts receivable.
C)A building used in a trade or business.
D)Inventory.

Question

Quizplus · Accepted Answer

Section 1231 property includes tangible property (e.g. buildings) used in a trade or business, as well as certain intangible property such as patents and licenses. Copyright (A) would be considered a capital asset unless it is held by the author as part of their business, in which case it could be considered Section 1231 property. Accounts receivable (B) and inventory (D) would be considered ordinary income assets.

Which One of the Following Is Section 1231 Property