Which of the Following Is Not True Regarding §1239

question 53

Multiple Choice

Which of the following is not true regarding §1239?

• A)It only applies to related taxpayers.
• B)It only applies to gains on sales of depreciable property.
• C)It only applies to gains on sales of nonresidential real property.
• D)It does not apply to losses.
• E)None of the choices are correct.

---

Definitions:

Good Faith

The honest intent to act without taking an unfair advantage over another party, often emphasized in contractual dealings.

Nonconforming Goods

Merchandise delivered under a sale contract that fails to meet the quality, description, or specifications agreed upon.

Cure the Deficiency

To rectify or resolve a shortfall, error, or omission in a legal document or procedure.

Statutorily Established Liquidated Damages

Damages specified by law for certain breaches of contract, where actual damages are difficult to ascertain.