Q - Which of the following statements is false?

A. When property is sold between taxpayers that fit the Internal Revenue Code's definition of "related parties," gain or loss is not recognized since generally it is not an arms-length transaction.

B. IRC1231 property includes both real and personal property used in a trade or business and held for more than one year.

C. IRC1231 has no other function other than to characterize the gain or loss of property falling within its provisions as either capital gain or ordinary loss.

D. Other provisions of the Internal Revenue Code may override IRC1231 and convert capital gain into ordinary income especially if the depreciation recapture provisions of IRC1245 & 1250 apply.