### Question
How does the law define section 1254 property?


### Answer
Under *26 U.S.C. § 1254*, **section 1254 property** is defined as:

> any property (within the meaning of section 614) if—



(A) any expenditures described in paragraph (1)(A) are properly chargeable to such property, or



(B) the adjusted basis of such property includes adjustments for deductions for depletion under section 611

#### Citation:
  - *26 U.S.C. § 1254*
  - 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**

