one year 0 one year six months two years 500 loss is ordinary If the mer gain is a Sec. 1231 gain. gain is ordinary loss is a Sec. 1231 loss. loss is ordinary. one year the loss is one year, six months, two years, If the holding period is more than ding period is one year or less, the 2500 loss is ordinary. r. the loss is a Sec. 1231 loss that may offset other Sec. 1231 gains. the gain is a Sec. 1231 gain and is taxable at Harry's regular tax rate. the gain is ordinary and is taxable at Harry's regular tax rate. the loss is an ordinary loss that may offset other Sec. 1231 gains. the loss is a Sec. 1231 loss that may offset other Sec. 1231 gains. Harry sells equipment used in a trade or business for $23,200. The equipment costs $27,700 and has an adjusted basis of $25,700. Why is it important to know the holding period? If the holding period is or less, the If the holding period is more than