Section 1221

Section 1221 (26 U.S.C.§1221)

The Internal Revenue Code section that defines a capital asset by explanation of things that are not capital assets.To find the law's text, see the instructions at Section (federal code).

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What Congress did was enact provisions, now contained in Code section 1221 (a)(3), stating that a "capital asset" does not include the following:
Therefore, we look to the Code for the appropriate definition, and specifically to section 1221. ...
Section 1221, as passed, reads: "It shall be the policy of the United States to take all necessary measures, including military action if required, to prevent Iran from threatening the United States, its allies, or Iran's neighbors with a nuclear weapon."
Also, Section 1221 of the act required a new section in the annual report on PRC military power (as required by P.L.
Section 1221 states that all assets are capital assets, with the exception of certain assets--such as inventory, accounts receivable and depreciable assets used in a trade or business--which are ordinary in character.
Payments received from the termination of lease contracts would then fall outside the scope of section 1234A, producing section 1231 gains or losses, as the associated property is not a capital asset as defined in section 1221. Net section 1231 gains, of course, receive capital gain treatment, while net section 1231 losses are ordinary (see "Best of Both Worlds?" JofA, March 09, page 64).
Once the Section 1231 gains are identified as such (i.e., the 1231 gains exceed the 1231 losses for the year and all unrecaptured Section 1231 losses are used to recategorize the gain as ordinary income), the gains are treated as long-term capital gains and may be offset by capital losses from the sale or exchange of capital assets defined under Section 1221.
Section 1221 of the National Defense Authorization Act for Fiscal Year 2006 requires us to submit quarterly updates to Congress on the costs of Operation Iraqi Freedom and Operation Enduring Freedom based on DOD's monthly Supplemental and Cost of War Execution Reports.
Section 1221 defines a capital asset as property held by the taxpayer except inventory; depreciable property or real estate used in a trade or business; copyrights, musical, or artistic works created by the taxpayer; and some other miscellaneous categories.
The Transportation and Community and System Preservation Pilot Program was established under section 1221 of the Transportation Equity Act for the 21st Century (TEA-21) in order to provide funding for research and grants to examine the correlation between transportation, community and system preservation.
The problem is that provisions creating the simplified procedures are prospective to partnership tax years beginning after December 31, 1997 (act section 1221), but the entirety of Part I of Subtitle C is effective retroactive to tax years ending on or after December 31, 1997 (act section 1226).