What Is A Section 1231 Gain Or Loss

Their treatment as ordinary or capital depends on whether you have a net gain or a net loss from all your section 1231 transactions.

What is a section 1231 gain or loss. When the sale of a section 1231 property results in a gain that gain is taxed at the lower capital gains tax rate instead of the ordinary income tax rate. Section 1231 gains and losses are the taxable gains and losses from section 1231 transactions discussed below. A section 1231 gain from the sale of a property is taxed at the lower capital gains tax rate versus the.

Section 1231 property is real or depreciable business property held for more than one year.