bstaxes Posted February 10, 2008 Report Share Posted February 10, 2008 It must be the virus that I had because my mind is boggled. Horses for draft (driving horse) are what property when sold? The horses were held 15 months. The more I read and research the more confused I am becoming. I am almost sure it is 1231. Thanks Quote Link to comment Share on other sites More sharing options...
MJG CPA Posted February 10, 2008 Report Share Posted February 10, 2008 Sec 1231 refers to depreciable property used in a business. Sec 1245 refers to gains from depreciable [sec 1231] property. So if you sell a 1231 asset, it produces 1245 gain. Whether a draft horse is a 1231 asset would depend on the nature of the business [not enough info]. Quote Link to comment Share on other sites More sharing options...
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