For sales of Section 1231 business property,long-term gains are taxed at preferential rates while long-term losses are considered ordinary losses and deductible in the year they are incurred.

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This statement is correct. For sales of Section 1231 business property, long-term gains are taxed at preferential rates, while long-term losses are considered ordinary losses and deductible in the year they are incurred. This treatment provides a tax advantage to taxpayers who have both long-term gains and losses from the sale of their business property.

For Sales of Section 1231 Business Property,long-Term Gains Are Taxed