Differences in an ordinary, capital, and Section 1231 asset

What is the difference between an ordinary, capital, and Section 1231 asset? Why is this distinction important? What assets are subject to depreciation recapture? Compare and contrast Section 1245 and Section 1250 recapture.

Solution Summary

In an 880 word solution, the questions are thoroughly explored including references to the Internal Revenue Code and examples for better understanding.