Can someone give me an overview on these?
Here's how I'm understanding, please let me know if I'm right/wrong/and/or completely off
Section 1231: Real and Personal property used in business for over 12months.
Gains: Section 1245 and 1250 gains at a lower rate (0% or 15%) (Gains from sale, exchange, etc...)
Losses: Ordinary losses instead of capital losses. This way, you won't have to wait for capital gains to offset your losses. Can deduct it as ordinary losses in the year instead.
Section 1245: Personal property used in trade or business for over 12 months.
Income: To the extent of accumulated depreciation. (Lesser or gain recognized or all accumulated depreciation).
Rest of the gains are recognized as Section 1231 gains.
No losses under section 1245.
Section 1250: Real property used in trade or business for over 12 months
Income: Recaptures only that portion of depreciation taken on real property that is in excess of straight line.
No losses under Section 1250.
