The General Rule Is That a Net Section 1231 Loss

question 95

True/False

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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Definitions:

Commonsense Guidelines

Basic, practical rules that are based on common sense or practical experience.

Annual Banquet

A formal meal hosted yearly, often by an organization or institution, to celebrate achievements or facilitate gatherings.

Deductively Written

Written work that starts with a generalization and follows with examples or specifics to argue a point.

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A measure of proficiency or accomplishment in a particular skill, subject, or area of activity.