For purposes of taxation of capital gains:

a. Short-term capital gains are taxed at 5 percent.

b. Under the provisions of Section 1245, any gain recognized on the disposition of a Section 1245 asset will be classified as a capital gain.

c. Ordinary income tax rates are applied to gains on collectibles.

d. Gains on Section 1231 assets may be treated as long-term capital gains, while losses in some cases may be deducted as ordinary losses.