[Hens2000]

I get that 1231 deals with depreciable personal and real property used in business for over 1 year and that 1250 deals with real business property, but I’m not understanding where land would fit, or does it at all? Since this all has to do with depreciation and land doesn’t get depreciated I was wondering if land would even be applicable here…

Thanks

[Desmond]

Hens2000 did you ever find out anything about this?
I have similar confusion, this is what i understand- someone please confirm-

Land comes under 1250, but since it does not have any depreciation and the ‘lesser of acc depreciation or gain' is treated as ordinary income, land alway results in 1231(capital) gain, not ordinary

[karla]

@Desmond and @Hens2000
Land is excluded from 1250 for the reason that it is not depreciable.
1250 is for depreciable business real estate.

[Author]

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