Which of the following is not a §1245 asset if held for more than one year?
A)Machinery.
B)Automobile.
C)Building purchased in 1985 for which accelerated depreciation was elected.
D)Land.
E)None of thesE.Land is not subject to cost recovery and is a 1231 asset,but not a §1245 asset.

Question

Quizplus · Accepted Answer

Land is not a §1245 asset if held for more than one year. It is, however, a 1231 asset. Machinery, automobile, and building purchased in 1985 for which accelerated depreciation was elected are all examples of §1245 assets that may be subject to recapture.

Which of the Following Is Not a §1245 Asset If