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Bernice, a sole proprietor, sold two business assets during the year. As a result, she has an ordinary loss and a Section 1231 gain. The

Bernice, a sole proprietor, sold two business assets during the year. As a result, she has an ordinary loss and a Section 1231 gain. The loss asset was office furniture that was held for eight month, and the gain asset is land that was held for five years. Why doesn't the ordinary loss offset the Section 1231 gain? This question comes from Chapter 17 in the 2016 Individual Income Tax book

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