bstaxes Posted February 10, 2008 Report Posted February 10, 2008 It must be the virus that I had because my mind is boggled. Horses for draft (driving horse) are what property when sold? The horses were held 15 months. The more I read and research the more confused I am becoming. I am almost sure it is 1231. Thanks Quote
MJG CPA Posted February 10, 2008 Report Posted February 10, 2008 Sec 1231 refers to depreciable property used in a business. Sec 1245 refers to gains from depreciable [sec 1231] property. So if you sell a 1231 asset, it produces 1245 gain. Whether a draft horse is a 1231 asset would depend on the nature of the business [not enough info]. Quote
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