Final answer:
The assertion that immediately expensed depreciable tangible personal property under Section 179 is subject to Section 1245 treatment is true. Section 179 allows an immediate expense deduction, but upon sale, gains are subject to recapture as ordinary income under Section 1245.
Step-by-step explanation:
The statement immediately expensed depreciable tangible personal property costs under § 179 is subject to § 1245 treatment is true. Under Section 179 of the Internal Revenue Code (IRC), a taxpayer can immediately expense certain tangible personal property in the year it is placed in service instead of recovering the cost over time through depreciation. This upfront expensing can provide a significant tax benefit. However, when such property is later sold or disposed of, the gain on the sale up to the amount of the Section 179 deduction is subject to recapture under Section 1245.
Section 1245 applies to depreciable personal property and some types of real property that have been depreciated using an accelerated method. It seeks to recapture the part of the gain that is attributable to the depreciation previously taken. Therefore, if a taxpayer has claimed an immediate expense deduction under Section 179 for tangible personal property, and that property is later sold at a gain, the portion of the gain up to the amount of the deduction is typically treated as ordinary income under Section 1245.