{"id":6164,"date":"2022-12-01T11:10:21","date_gmt":"2022-12-01T11:10:21","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=6164"},"modified":"2022-12-01T11:13:15","modified_gmt":"2022-12-01T11:13:15","slug":"1231-section-property-gain-or-loss","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/1231-section-property-gain-or-loss\/","title":{"rendered":"How is the 1231 section gain or loss taxed?"},"content":{"rendered":"\n
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1231 section gain or loss happens when you sell or transfer any asset used in business and on which depreciation is claimed. One should always distinguish the sale of an investment asset not used for business purposes. It also means that a section 1231 property is always used for business and on which you claimed depreciation expense.<\/p>\n\n\n\n

Section 1231 of the Internal Revenue Code<\/a> applies to assets used in a trade or business. IRC 1231 also applies to a capital asset connected with a transaction entered into for profit and held for over one year.The Section 1231 property sale or exchange results in either of two<\/p>\n\n\n\n

  1. Long-term capital gain <\/a>(LTCG), which is taxed at LTCG rate and depreciation recapture income<\/li>
  2. Ordinary loss that can be adjusted with income of the year.<\/li><\/ol>\n\n\n\n
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