Section 1231 Defined Real property or depreciable property used in a trade or business for more than one year Certain types of property do not qualify as Sec. 1231 property Musical composition Inventory Copyright Letters or memorandumSection 1231 Defined • Real property or depreciable property used in a trade or business for more than one year • Certain types of property do not qualify as Sec. 1231 property – Musical composition – Inventory – Copyright – Letters or memorandum