If a Controlling Shareholder Sells Depreciable Property to a Controlled

question 26

True/False

If a controlling shareholder sells depreciable property to a controlled corporation and the property is depreciable by the purchaser, any gain on the sale is a 1231 gain.

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Definitions:

Manual Workers

Laborers who perform physical work with their hands, often in construction, manufacturing, or agriculture.

Petty Bourgeoisie

In Marx’s usage, is the class of small-scale capitalists who own means of production but employ only a few workers or none at all, forcing them to do physical work themselves.

Small-Scale Capitalists

Individuals or businesses that operate on a limited scale in terms of resources, investment, and production, often emphasizing personal rather than corporate gain.

Relationship to the Means of Production

A concept in Marxist theory referring to the dynamics and conflicts arising from the way individuals and groups relate to the ownership and control of production resources.