Once § 1231 gains are netted against § 1231 losses, if the gains exceed the losses, the net gain is offset by the
lookback nonrecaptured § 1231 losses.

Question

Quizplus · Accepted Answer

This is correct. If the net § 1231 gains after combining gains and losses are positive, they are offset by any lookback nonrecaptured § 1231 losses before being reported on the taxpayer's tax return.

Once § 1231 Gains Are Netted Against § 1231 Losses