Section 1250

Section 1250

A section of the IRS code stating that a gain from selling real estate that has been subjected to accelerated depreciation should be treated as ordinary income instead of a capital gain.

Notes:

Generally capital gains taxation rates are more favorable than income tax.

See also: Accelerated Depreciation, Accelerated Cost Recovery System-ACSR, Assessed Value, Capital Gains, Depreciation, General Depreciation System, Salvage Value, Section 1245