The general rule is that a net Section 1231 loss is treated as a capital loss and a net Section 1231 gain is treated as ordinary income.

Name: The general rule is that a net Section 1231 loss is treated as a capital loss and a net Section 1231 gain is treated as ordinary income.
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The general rule is actually the opposite: a net Section 1231 gain is treated as a capital gain and a net Section 1231 loss is treated as ordinary loss.

The General Rule Is That a Net Section 1231 Loss