what is the difference between section 1245 property and section 1231 property 
section 1245 and section 1231 concern the same types of business property the difference between them is that section 1245 properties have been depreciated or amortized once the tax on that depreciation or amortization has been recaptured the property is considered section 1231 property 2the bottom linesection 1245 provides a way to recapture taxes lost on section 1231 property that has depreciated or amortized it applies to real or depreciable business property that a business has held for more than one year this recapture happens when the business sells certain tangible or intangible personal property if the business took depreciation deductions on its property then sold that property for a profit the gains are taxed at ordinary income tax rates once the depreciation or amortization is recaptured the property becomes section 1231 property and the remaining value is taxed at capital gains rates 