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Section 1245 property

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Section 1245 property

Under IRS statutes and regulations, depreciable real and personal property.



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RECAPTURE PITFALLS Cost segregation generally reclassifies section 1250 property as section 1245 property for depreciation purposes.
But, having Liberty Zone leasehold improvements eligible for a 5-year recovery does not preclude the taxpayer from conducting a cost segregation study to re-classify certain non-bonus applicable section 1250 property to section 1245 property so as to take advantage of 5 and 7-year recovery periods.
In addition, a straight-line method election for regular tax and AMT under section 168(g)(7) would eliminate any ACE adjustment on newly acquired section 1245 property.
 
 
 
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