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.

---

Definitions:

Phantom Limb Sensations

Refers to the feeling that an amputated or missing limb is still attached to the body and is moving appropriately with other body parts.

Rubber-Hand Illusion

A psychological experiment that demonstrates how sensory information can influence the perception of one’s body, creating the illusion that a rubber hand is part of the participant’s body.

Tinnitus

A condition characterized by hearing noises (like ringing, buzzing, or humming) in the ears when no external sound is present.

Chemical Sense

A type of sensory perception, including taste and smell, that allows organisms to detect chemical substances in their environment.