Reference no: EM131211291
1. Which additional criterion is needed to qualify the sale of unharvested crops as Section 1231 property?
>Growing on land used in a business and held for at least nine months, plus both crops and land sold together to the same buyer.
>Growing on land used in a business and held for at least one year, plus both crops and land sold together to the same buyer.
>Growing on land used in a business and held for at least one year, plus both crops and land sold to more than one buyer
>Growing on land used in a business and held for at least nine months, plus both crops and land sold to more than one buyer
2. A taxpayer’s gain and losses for the year pertaining to business assets that qualify as section 1231 property are as follows:
Losses due to insurance reimbursement for theft $20,000
Gain due to insurance reimbursement for fire damage $8000
Gain due to building condemnation $23,000
Loss due to sale of property $10,000
3. There are no non-recaptured net Section 1231 losses from previous years. What is the tax treatment for casualty and theft transactions?
>Net Section 1231 gain of $1000
>Net section 1231 loss of $12,000
>Ordinary gain of $31,000 and an ordinary loss of $30,000
>Ordinary gain of $8000 and an ordinary loss of $20,000
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: Which additional criterion is needed to qualify the sale of unharvested crops as Section 1231 property? A taxpayer’s gain and losses for the year pertaining to business assets that qualify as section 1231 property are as follows: There are no non-rec..
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