Taxation of 1231 Property


This practice note examines property subject to depreciation and real property used in a trade or business, commonly referred to as I.R.C. Section 1231 property. Among other aspects of I.R.C. Section 1231 property examined, this practice note analyzes how I.R.C. Section 1231 property gains and losses are generated, property qualifying for I.R.C. Section 1231 tax treatment, I.R.C. Section 1231 treatment advantages, installment sales of depreciable property that involve unrecaptured I.R.C. Section 1250 gain, and interplay between I.R.C. Sections 1231 and 1234A tax practice discipline.