Section 1245 may apply to amortizable § 197 intangible assets.

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Section 1245 of the Internal Revenue Code generally applies to certain types of depreciable or amortizable property, including intangible assets. Specifically, if a taxpayer sells or otherwise disposes of an intangible asset that is subject to amortization under § 197, any gain on the sale may be treated as ordinary income to the extent of any previously claimed amortization deductions. This can have certain tax implications, such as potentially increasing the taxpayer's tax liability in the year of the sale.

Section 1245 May Apply to Amortizable § 197 Intangible Assets