Section 1245

A part of the IRS code stating that depreciable property that has been sold at a price in excess of depreciated or salvage value may qualify for favorable capital-gains tax treatment.

Investopedia Says:
This is generally a good thing for the seller. Generally capital gains taxation rates are more favorable than income tax, and under section 1245 they are even a little more advantageous.

Related Links:
Investors would be wise to consider the impact of the government's cut on their returns. Learn ways to minimize it. A Long-Term Mindset Meets Dreaded Capital-Gains Tax
Companies make choices and assumptions in calculating depreciation, and you need to know how these affect the bottom line. Appreciating Depreciation

The section of the Internal Revenue Code dealing with Gains from Personal Property on which Depreciation had been claimed. Generally, gains are taxed at the Capital Gains rate except to the extent of depreciation claimed, which is taxed as ordinary income.