When a Section 1231 asset is sold,the gain can be only classified as an ordinary gain.

Name: When a Section 1231 asset is sold,the gain can be only classified as an ordinary gain.
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When a Section 1231 asset is sold, the gain can be classified as either ordinary or capital depending on whether it is a net gain or a net loss for the year. If there is a net gain, it is treated as long-term capital gain. If there is a net loss, it is treated as an ordinary loss.

When a Section 1231 Asset Is Sold,the Gain Can Be