Thursday, October 8, 2015

Term of the Day: Section 1231 Property

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October 7, 2015
Section 1231 Property

1231 property is real or depreciable business property held for over a year. Section 1231 property includes buildings, machinery, land, timber and other natural resources, unharvested crops, cattle, livestock and leaseholds that are at least a year old, but does not include poultry, trademarks, or inventory.

Breaking It Down:

Broadly speaking, if gains on property fitting Section 1231's definition are more than the adjusted basis and...

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