Question

For § 1231 treatment, a long-term holding period requirement must be met.

a) True
b) False

Answer 1

For § 1231 treatment, the true statement is that a long-term holding period requirement must be met. The property must be held for more than one year. Contrarily, the Necessary and Proper Clause has generally been interpreted to expand, not limit, the powers of the national government.

Step-by-step explanation:

For § 1231 treatment, a long-term holding period requirement must be met. The answer is a) True. Section 1231 of the Internal Revenue Code provides special tax treatment for certain types of property, including real and depreciable property used in a business and held for longer than one year. To qualify, the property must be held for more than one year, thus satisfying the long-term holding requirement.

Now regarding Exercise 9.3.1, the statement that 'the necessary and proper clause has had the effect of limiting the power of the national government' is b) False. The Necessary and Proper Clause, also known as the Elastic Clause, is found in Article I, Section 8, of the U.S. Constitution.

Its intended effect has been to expand the powers of Congress by allowing it to pass laws deemed necessary and proper for executing its enumerated powers, thereby giving it the flexibility to meet changing needs and circumstances.