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. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax ...
  3. Accelerated Cost Recovery System ...

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

    The dollar value assigned to a property for purposes of measuring ...
  5. General Depreciation System - GDS

    The most commonly used modified accelerated cost recovery system ...
  6. Capital Gain

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