BUSINESS - SECTIONS Flashcards
Section 1250 Property
Any real property (other than section 1245 property) which is or has been property of a character subject to the allowance for depreciation.
(ie. office buildings)
1250 is specific to REAL PROPERTY including land and the buildings/ structures on it.
Section 1245 Property
Section 1245 property includes any property that is or has been subject to depreciation or amortization and is:
- Personal property,
- Other tangible property (other than a building or its structural components) that is:
a. Used in manufacturing, production, extraction or furnishing transportation, communications, electrical energy, gas, water, or sewage disposal services,
b. A research facility used for the activities in (a), or
c. A facility used in any of the activities in (a) for the bulk storage of fungible commodities, - Real property (other than property described in (2) with an adjusted basis that was reduced by certain amortization recapture deductions listed in section 1245(a)(3)(C) of the Internal Revenue Code,
- A single purpose agricultural or horticultural structure, or
- A storage facility (other than a building or its structural components) used for the distribution of petroleum.
NOTE: Can be INTANGIBLE property.
Non-Recaptured Section 1231 Losses are net Section 1231 losses for the previous ________ years?
5 years.
This is for losses that have NOT been applied against a net section 1231 gain!
The recapture period is 5 yrs beginning with the earliest loss in the 5 year period.