Mark owns an unincorporated business and has $20,000 of Section 1231 gains and $22,000 of Section 1231 losses.He must report a capital loss of $2,000 on his tax return.

Name: Mark owns an unincorporated business and has $20,000 of Section 1231 gains and $22,000 of Section 1231 losses.He must report a capital loss of $2,000 on his tax return.
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Question

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Section 1231 gains and losses are netted against each other. If losses exceed gains, the net loss is treated as an ordinary loss, not a capital loss.

Mark Owns an Unincorporated Business and Has $20,000 of Section