Question

State whether the following property Is a sec. 1231 asset (and if so whether it is section 1245 or 1250 property), a capital asset or none of these:

• Car owned by a corporation
• Car owned by an individual for personal use
• Office building owned by a partnership
• Inventory owned by a sole proprietorship
• Computer owned by a corporation
• Warehouse owned by a corporation
• Typewriter owned by an individual
• Equipment owned by a proprietorship
• Rental property owned by an individual

Answer 1

• Car owned by a corporation: 1231 and 1245
• Car owned by an individual for personal use: Capital asset
• Office building owned by a partnership: 1231 and 1250
• Inventory owned by a sole proprietorship: none of these
• Computer owned by a corporation: capital assets
• Warehouse owned by a corporation: capital asset
• Typewriter owned by an individual: capital asset
• Equipment owned by a proprietorship: capital asset
• Rental property owned by an individua: none of thse