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:

Capable

Having the ability, fitness, or quality necessary to do or achieve a specified thing.

Motivated

Refers to the drive, desire, or willingness of an individual to take action or achieve a certain goal.

Law of Effect

A psychological principle stating that behaviors followed by favorable consequences tend to be repeated, while behaviors followed by negative consequences are less likely to be repeated.

Pleasant Outcomes

Positive results or benefits that are satisfying or enjoyable, often as a result of specific actions or behaviors.