Trade or Business Assets

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January 1, 1 6 min read Definitions

Section 1231 Internal Revenue Code Capital Gains Tax Deductible Depreciation Recapture Trade or Business Assets

Section 1231 of the Internal Revenue Code pertains to assets used in a trade or business. Gains on Section 1231 assets are generally taxed at capital gains rates, except for depreciation recapture, while losses are tax-deductible as ordinary income.