Section 1245

Section 1245 means:
the part of the Internal Revenue Code that deals with gains from personal property (e.g., machines, equipment, furniture, and automobiles) on which depreciation has been claimed. Generally, gains are taxed at capital gain rates except to the extent of the depreciation claimed.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

Description and Definition of Section 1245

This section of the Internal Revenue Code deals with depreciable personal property such as business equipment and vehicles. Any gain on the sale in excess of depreciation may qualify for favorable capital gains tax treatment under certain conditions.

Resources

See Also

Further Reading

• Section 1245 in the West's Tax Law Dictionary
• Section 1245 in “A Dictionary of Taxation”