Question

For purposes of this section, the term "section 1245 property" means any property which is or has been property of a character subject to the allowance for depreciation provided in section 167 and is either—

(A) personal property,
(B) other property (not including a building or its structural components) but only if such other property is tangible and has an adjusted basis in which there are reflected adjustments described in paragraph (2) for a period in which such property (or other property)—

Answer 1

Section 1245 property is a tax term describing depreciable property that can lead to recapture of depreciation as ordinary income upon its sale or disposition.

Step-by-step explanation:

The term "section 1245 property" refers to a tax-related concept from the United States Internal Revenue Code. It encompasses any depreciable property, which can be personal or tangible other property (that is not a building or its structural components), that has an adjusted basis reflecting certain adjustments, such as depreciation. The significance of section 1245 property lies in the recapture of depreciation upon the sale or disposition of the property, where gains may be taxed as ordinary income to the extent of previous depreciation deductions.