|Posted: 28 Sep 2009 at 17:34 | IP Logged
A 1231 gain is a gain on either depreciable or real property (not personal property). It is for an asset held more than 12 months.
A 1245 gain is for machinery and equipment only. You will never see a 1245 loss as all you can have is a gain. This gain will just be the amount of accumulated depreciation that you write off when you sell the equipment. The rest of the gain if it is there is a 1231 gain.
A 1250 gain is for buildings/real property only. It is also just a gain only (can't have a 1250 loss) and regular income is the difference between straight line and accel depreciation. The rest of the gain is 1231.
FAR - 91
AUD - 89
REG - 94
BEC - 92