Happy to Help! Understanding the Ins and Outs of Section 1231 Property

Property subject to depreciation and real property used in a trade or business is commonly referred to as I.R.C. Section 1231 property. Once you have concluded that property is I.R.C. Section 1231 property, your work is not done. This practice note assists with your next steps: determining the advantages of such treatment, the installment sales of depreciable property that involve unrecaptured I.R.C. Section 1231 gain, and the interplay between I.R.C. Section 1231 and 1234A, which potentially treats certain lease terminations as capital gain income.

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