This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- Section 1245 recaptures depreciation on personal property as ordinary income.

- The recapture amount is the lesser of the gain realized or the total depreciation taken.

- Any gain exceeding the recaptured amount is typically treated as a Section 1231 gain.

- Section 1245 applies to assets like equipment and vehicles, not buildings (which are Section 1250).

- All transactions involving Section 1245 property are reported on Form 4797.

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