Section 1231 Property

Section 1231 Property

Section 1231 property includes depreciable assets and real estate used in a trade or business and held for more than one year. Under certain circumstances, it also includes timber, coal, domestic iron ore, livestock (held for draft, breeding, dairy, or sporting purposes), and unharvested crops.
References in periodicals archive ?
For example, a taxpayer recognized an ordinary loss from selling IRC section 1231 property.
19) If S and B were divisions of a single corporation, however, the corporation could convert what would ordinarily be inventory to section 1231 property used in its own trade or business (e.
Although this proposal would be consistent with the treatment accorded section 1231 property in general, we realize that the proposal perpetuates asymmetrical tax treatment--albeit one that shifts the balance in favor of the taxpayer and away from the current formulation of the character rules.