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Business, 25.04.2021 08:00 elisakgarcia2007

Which statements about Section 1231 assets are true? Pick all that apply!! Question options:

If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss

If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a long term capital gain that is taxed at favorable capital gains rates

If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur because of recapture provisions.

If Section 1231 assets are sold and the taxpayer has a realized loss, the is limited like a capital loss

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Which statements about Section 1231 assets are true? Pick all that apply!! Question options:
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