### Question
Can you define what section 1245 property means?


### Answer
**Section 1245 property** is defined as the following in *26 U.S.C. § 1245*:

> 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)—


(i) was used as an integral part of manufacturing, production, or extraction or of furnishing transportation, communications, electrical energy, gas, water, or sewage disposal services,


(ii) constituted a research facility used in connection with any of the activities referred to in clause (i), or


(iii) constituted a facility used in connection with any of the activities referred to in clause (i) for the bulk storage of fungible commodities (including commodities in a liquid or gaseous state),


  

(C) so much of any real property (other than any property described in subparagraph (B)) which has an adjusted basis in which there are reflected adjustments for amortization under section 169, 179, 179A, 179B, 179C, 179D, 185,[1](#1245_1_target) 188 (as in effect before its repeal by the Revenue Reconciliation Act of 1990), 190, 193, or 194,[2](#1245_2_target)


(D) a single purpose agricultural or horticultural structure (as defined in section 168(i)(13)),


(E) a storage facility (not including a building or its structural components) used in connection with the distribution of petroleum or any primary product of petroleum, or


(F) any railroad grading or tunnel bore (as defined in section 168(e)(4))

#### Citation:
  - *26 U.S.C. § 1245*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

