Section 1231 Capital Gains

Did you know that a gain on real or depreciable business property held for more than one year is taxed at the lower capital gains tax rate versus the rate for ordinary income. This is known as a Section 1231 Gain. If the sold property was held for less than one year, the 1231 gain does not apply.

The property has to be held for more than a year and was used in trade or in a business (usually generating revenue via rent or royalties).

IRS Tax Detail: Taxpayers should know the criteria for section 1231 gains this filing season: http://go.usa.gov/xd73W

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