Which of the following is True regarding the §1231 look-back rule?
A) It only applies when a §1231 loss occurs.
B) It only applies when a §1231 gain occurs.
C) It only applies when a §1231 gain occurs and there is a nonrecaptured §1231 loss in the prior five years.
D) It only applies when a §1231 gain occurs and there is a nonrecaptured §1231 gain in the prior five years.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The look-back rule only recharacterizes a current year §1231 gain if there are §1231 losses from the prior 5 years.

Which of the Following Is True Regarding the §1231 Look-Back