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Section 1231 Property

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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.


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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.
Note: Section 1231 property includes depreciable or real property used in a business or in the production of income, primarily equipment and machinery, buildings and land.
 
 
 
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