Which of the following transactions results solely in §1245 gain?
A) Sale of machinery held for less than one year.
B) Sale of machinery held for more than one year and where the gain realized exceeds the accumulated depreciation.
C) Sale of machinery held for more than one year and where the accumulated depreciation exceeds the gain realized.
D) Sale of land held for more than one year and where the amount realized exceeds the adjusted basis.
E) None of these.

Question

Quizplus · Accepted Answer

Section 1245 gain is recognized when the gain from the sale of depreciable personal property is less than or equal to the accumulated depreciation. In option C, the gain realized is less than the accumulated depreciation, resulting solely in §1245 gain.

Which of the Following Transactions Results Solely in §1245 Gain