Once § 1231 Gains Are Netted Against § 1231 Losses

question 56

True/False

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.

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Definitions:

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and personal necessities (like food, shelter) are taken care of.

Gross Income

The total revenue generated from a business's activities or an individual's earnings before any deductions are made for expenses, taxes, or other reductions.

Discretionary Income

Discretionary income is the amount of an individual's income left for spending, investing, or saving after taxes and personal necessities (like food, shelter) are taken care of.

Necessities

Essential items and services required for basic human survival and well-being, such as food, water, shelter, and healthcare.