A Net §1231 Gain Becomes Ordinary While a Net §1231

question 4

True/False

A net §1231 gain becomes ordinary while a net §1231 loss becomes long-term capital gain.

---

Definitions:

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, often leading to harm or damage.

Tire Failure

The breakdown or malfunction of tire components, leading to loss of air pressure, blowouts, or tread separation, potentially causing vehicular accidents.

Comparative Negligence

Comparative negligence is a legal doctrine that reduces the claimant's compensation by a percentage equal to their fault in causing the damage or injury.

Contributory Negligence

Contributory Negligence is a legal doctrine that may limit or prevent a plaintiff's recovery if it can be shown that their own negligence contributed to the harm suffered.