Comments on: What is the difference between Sec1231 property and Sec 1245 property? http://www.ebook3p.com/what-is-the-difference-between-sec1231-property-and-sec-1245-property/ Just another WordPress weblog Fri, 06 May 2011 05:56:16 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: hrblockerrolquinn http://www.ebook3p.com/what-is-the-difference-between-sec1231-property-and-sec-1245-property/comment-page-1/#comment-2693 hrblockerrolquinn Sun, 01 Feb 2009 02:01:57 +0000 http://ebook3p.com/what-is-the-difference-between-sec1231-property-and-sec-1245-property/#comment-2693 <a href="">Content by <a href='http://www.funjoomla.com'>Fun Joomla</a></a> Dear John: This is a tuff one. IRC Section 1231 (title 26) defines the sale of property used in a trade or business as Section1231. Section 1245 covers the disposition of certain depreciated property as Sec 1245. I could not determine the exact Section unless we know more about the machinery, but I am leaning toward Section 1245. Remember to recapture the depreciated amount to determine basis and also the gain is taxed as ordinary income. This advice was prepared based on our understanding of the law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor Content by Fun Joomla

Dear John: This is a tuff one. IRC Section 1231 (title 26) defines the sale of property used in a trade or business as Section1231. Section 1245 covers the disposition of certain depreciated property as Sec 1245. I could not determine the exact Section unless we know more about the machinery, but I am leaning toward Section 1245. Remember to recapture the depreciated amount to determine basis and also the gain is taxed as ordinary income.
This advice was prepared based on our understanding of the law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more.
Errol Quinn Enrolled Agent Master Tax Advisor

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