B is corrent. Sec. 1231 property generally includes both depreciable and nondepreciable property used in a trade or business or held for the production of income if held for more than 12 months. Specifically excluded from Sec. 1231 is inventory and property held for sale to customers, as well as accounts and notes receivable arising in the ordinary course of a trade or business. Additionally, copyrights, literary, musical, and artistic compositions held by a taxpayer whose personal efforts created such property are excluded from Sec. 1231.
A is incorrect. Unharvested crops on land held more than 12 months would be Sec. 1231 property.
C is incorrect. Business property held more than 12 months would be Sec. 1231 property.
D is incorrect. Business property held more than 12 months would be Sec. 1231 property.
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