Section 1245

Section 1245

A part of the IRS code stating that depreciable property that has been sold at a price in excess of depreciated or salvage value may qualify for favorable capital-gains tax treatment.

Notes:

This is generally a good thing for the seller. Generally capital gains taxation rates are more favorable than income tax, and under section 1245 they are even a little more advantageous.

See also: Accelerated Depreciation, Accelerated Cost Recovery System-ACSR, Assessed Value, Capital Gains, Depreciation, General Depreciation System, Salvage Value, Section 1250