Differences in an ordinary, capital, and Section 1231 asset

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• ordinary, capital, and 1231 assets.

  These differences are being given from the perspective of the tax law. 1231 assets are those that are described in the 26 USCA section 1231 of the IRC. Usually two types of assets (property) are included in this.

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• Section 1231 Assets

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  IRC section 1231 refers to such gains and losses as "section 1231 gain" and "section 1231 loss."

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  To be treated as capital gain, an asset would have to have been sold for more than its original purchase price. That fact pattern was not evident in any of the three dispositions.