Section 1231 Gain or Loss

Section 1231 Gain or Loss

A net section 1231 gain is treated as long-term capital gain and a net section 1231 loss is treated as an ordinary (fully deductible) loss.
References in periodicals archive ?
Gain or loss on property used in a trade or business, including rental real estate, is not "capital gain or loss"--it is referred to as "IRC Section 1231 gain or loss.
197-2(g)(8) goes on to state that if the intangible is "used in a trade or business and held for more than one year, gain or loss on its disposition generally qualifies as section 1231 gain or loss.
Consider further the situation where the manufacturer sustains a section 1231 gain or loss on the sale of equipment used in fulfilling the contract, and the cost-plus contract provides that such gain or loss is to be taken into account in determining the net amount due.