What is Section 1231 property?
Real estate used in a trade or business, including rental operations, held over one year. Depreciable, with a taxpayer-friendly asymmetry: net gains are taxed as capital gains, net losses are deductible as ordinary losses.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.