Subsection (f) Asset

Subsection (f) Asset is used.

with regard to a collapsible corporation, any of the following held by a corporation:

• property that is not a capital asset.

• property under construction.

• land and improvements.

A collapsible corporation may elect to recognize gain on Subsection (f) assets in order to prevent shareholders from having to recognize ordinary income on the sale of the corporation's stock. Former IRC (check if this IRC provision is current here) §341(f)(4).