When you sell depreciable personal property I.e. section 1245 property, the gain is not necessarily long term because you first "recapture" any depreciation taken and it is taxed at ordinary income rates. Any gain above that is taxed at more favorable long term rates.
So if you buy an amp and cab for $2000 and depreciate it straight over a five year life. Say in year three you have taken 1,000 depreciation and now have a basis of 1,000 and sell it for 1,500 for a gain of 500. The gain is all taxed at ordinary income rate s because you have to recapture the depreciation taken (to the extent of the gain).
Same example but it is a bass and you sell it for 2,500 with a gain of 1,500. Since the total gain is more than the depreciation taken you recapture 1,000 at ordinary rates and 500 is long term capital gain.
There are different rules for real estate Section 1250 property whereby you only recapture as ordinary income the depreciation taken in excess of straight line I.e. Accelerated depreciation. That is much less common now as accelerated depreciation has not been allowed for some time.
