Sect 1245 property

[cpabsd]

I seem confused each time I try to understand what property is section 1245. Real property is section 1250. Would computers and equipment be 1245? Please clarify. I've read the instructions to Form 4797 and in Publication 557 ( I think) and am still confused.

Thanks

[DANRVAN]

Some real property is 1245 property. Research sources such as RIA have detailed explanations. Or try a google search for articles such as this one:

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CorpFin/Section1245.jsp

[OldJack]

Basically all property is sec. 1231 except business depreciable property which is all sec.1245 except real estate which is 1250. There are other section property which are not that common in your practice and I will not mention.

As an example a piece of machinery is sect 1231 (Sch-D) unless it is use in a business and depreciated it therefore is sec. 1245 (Form4797). A Building is sec. 1231 property (Sch-D) unless it is used in a business and depreciated so it is therefore sec. 1250 (Form4797).