A business-use car held long-term and sold at a LOSS is treated as what section property? §179 §1231 §1245 §1250
Section 179 deals with Depreciation of Business Assets such as vehicle, Machinery. It allows Depreciation of the assets but it does not deal with gain or loss on sale of them. so for the above condition it will not fall in 179.
Section 1245 deals with gain or loss for all depreciable personal property and certain real property. so the above car also not included in this statment.
Section 1250 deals with real property i.e land and builing, so also the sale of car does not falls here.
It will attract Section 1231, as it deals wit property used for business and which is held for more than a year(Long Term Assets). So the Loss From the Business-car will fall under setion 1231 and it is treated as an ordinary loss and deducted from the income and gain of the ordinay business.
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