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 Commentary
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.
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See also: Accelerated Cost Recovery System-ACSR, Accelerated Depreciation, Assessed Value, Capital Gains, Depreciation, General Depreciation System, Salvage Value, Section 1250