Section 1231 Property

AAA

DEFINITION of 'Section 1231 Property'

A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, machinery, land, timber and other natural resources, unharvested crops, cattle, livestock and leaseholds that are at least a year old.

INVESTOPEDIA EXPLAINS 'Section 1231 Property'

Section 1231 gains and losses are netted against each other in the same manner as capital gains and losses, except that a net section 1231 gain is considered a capital gain, while a net section 1231 loss is classified as an ordinary loss.

RELATED TERMS
  1. Real Property

    Any property that is attached directly to land, as well as the ...
  2. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  3. Section 1245

    A part of the IRS code stating that depreciable property that ...
  4. Section 1250

    A section of the United States Internal Revenue Service Code ...
  5. Ordinary Loss

    Any loss incurred by a taxpayer that is not considered a capital ...
  6. Economic Justice

    Economic justice is a component of social justice. It's a set ...
Related Articles
  1. Capital Gains Tax 101
    Taxes

    Capital Gains Tax 101

  2. Avoid Capital Gains Tax On Your Home ...
    Taxes

    Avoid Capital Gains Tax On Your Home ...

  3. 5 Things Every Real Estate Pro Knows
    Home & Auto

    5 Things Every Real Estate Pro Knows

  4. Seek Out Past Losses To Uncover Future ...
    Active Trading

    Seek Out Past Losses To Uncover Future ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center