When a Section 1231 Asset Is Sold,the Gain Can Be

question 62

True/False

When a Section 1231 asset is sold,the gain can be only classified as an ordinary gain.

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Definitions:

Verbal Agreement

A contract or agreement made through spoken words, which can be legally binding, although harder to prove than written ones.

Void

Refers to something that is legally declared to be invalid or null.

Condition Subsequent

A condition that alters the rights or duties of the parties to a contract, or that may have the effect of terminating the contract if it should occur.

Condition Precedent

A legal term for a condition or event that must occur before a contract becomes effective or before an obligation must be performed.