Section 1245

Section 1245

A section of the IRS tax code indicating that any depreciable property that is sold for more than the depreciated value qualifies for capital gains taxation rather than income taxation. Equally importantly, Section 1245 qualifies this type of property for favorable capital gains treatment: sellers pay less in capital gain tax than they otherwise would on this property. Section 1245 applies to real, personal, and intangible property so long as it can be depreciated and amortized. See also: Accounting.

Section 1245 (26 U.S.C. §1245)

The Internal Revenue Code section that establishes rules regarding gains and losses on certain depreciable property,including real property.It is important because it contains definitions for something called “Section 1245 property.”This,in turn,is important in other tax laws defining benefits available for Section 1245 property. To find the law's text, see the instructions at Section (federal code).

Section 1245

When depreciable personal property is sold, gain must be recaptured as ordinary income up to the amount of depreciation claimed. Section 1245 is the Internal Revenue Code section that requires this treatment. Also see "Recapture of Depreciation."
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A cost segregation study accelerates depreciation, by classifying Internal Revenue Code (IRC) Section 1250 property costs to IRC Section 1245 property.
Under Section 1245 of the Act, foreign financial institutions that knowingly facilitate significant financial transactions with the Central Bank of Iran or with U.
As a result, I will report to the Congress that exceptions to sanctions pursuant to Section 1245 of the ND for certain transactions will apply to the financial institutions based in these countries for a potentially renewable period of 180 days", he added.
WASHINGTON, Sept 6 (KUNA) -- Secretary of State John Kerry announced Friday that Japan has again qualified for an "exception to sanctions" according to Section 1245 of the US National Defense Authorization Act (ND) for Fiscal Year 2012.
Section 1245 of the IFCPA requires the President to impose sanctions on any person or entity who, after July 1, 2013, knowingly sells, supplies or transfers to or from Iran:
7 Said: Today I Am Pleased To Announce That China, India, Malaysia, The Republic Of [S] Korea, Singapore, South Africa, Sri Lanka, Turkey And Taiwan Have Again Qualified For An Exception To Sanctions Outlined In Section 1245 Of The National Defence Authorisation Act (NDAA) for Fiscal Year 2012, Based On Additional Reductions In The Volume Of Their Crude Oil Purchases From Iran' - As A Result, She Was To Report To The Congress That The Exceptions Will Apply To The Financial Institutions Based In These Countries For A Potentially Renewable Period Of 180 Days
Department of the Treasury issued guidance concerning the implementation of section 1245 of the National Defense Authorization Act (NDAA).
Section 1245 is another Code section that incorporates a tax benefit component in the characterization of taxable gain attributable to depreciation deductions as ordinary income.
Section 1245 applies to depreciable personal property.
Cost Segregation--A cost segregation study to determine whether real property qualifies as Section 1245 personal property (qualifying for a shorter write-off periods) or Section 1250 real property (longer write-off periods) can mean significant savings.
Section 1245 applies to nonrealty depreciable assets, such as machinery and equipment.
This same discussion also deftly provides a brief, yet rather thorough, explanation of Section 1245 and 1250 property.