Section 1239 (relating to the sale of certain property between related taxpayers) does not apply unless the property:
A)Was depreciated by the transferor.
B)Is depreciable in the hands of the transferee.
C)Is a capital asset.
D)Is real property.
E)None of these.

Question

Quizplus · Accepted Answer

Section 1239 applies when there is a sale of certain property between related taxpayers, and the transferred property is a capital asset, a depreciable asset in the hands of the transferee, and has been depreciated by the transferor. Therefore, choice B is correct because the property must be depreciable in the hands of the transferee for Section 1239 to apply. The other choices do not have any direct connection with Section 1239.

Section 1239 (Relating to the Sale of Certain Property Between