Section 1245


DEFINITION of '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.

BREAKING DOWN 'Section 1245'

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.

  1. Section 1231 Property

    A tax term relating to depreciable business property that has ...
  2. Assessed Value

    The dollar value assigned to a property for purposes of measuring ...
  3. Accelerated Cost Recovery System ...

    A system of depreciation introduced by the Economic Recovery ...
  4. Salvage Value

    The estimated value that an asset will realize upon its sale ...
  5. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  6. General Depreciation System - GDS

    The most commonly used modified accelerated cost recovery system ...
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