Net Section 1231 Gain

A net section 1231 loss is fully deductible as an ordinary loss.

Net section 1231 gain. 2 non recaptured net section 1231 losses for purposes of this subsection the term non recaptured net section 1231 losses means the excess of. A section 1231 gain from the sale of a property is taxed at the lower capital gains tax rate versus the rate for ordinary income. If you have a net section 1231 gain it is ordinary income up to the amount of your nonrecaptured section 1231 losses from previous years.

The rest if any is long term capital gain. The net section 1231 gain for any taxable year shall be treated as ordinary income to the extent such gain does not exceed the non recaptured net section 1231 losses. If that property was held for more than a year.

A net section 1231 gain is taxed at the lower capital gain rates. Section 1231 gain when real property or depreciable business property is sold for more than its current tax basis it is considered a capital gain. Section 1231 gains and losses are the taxable gains and losses from section 1231 transactions discussed below.