RECAPTURING PRIOR SECTION 1231 LOSSES 30. If a taxpayer has a net Section 1231 gain, there is the net Section 1231 gain can taxed as a long-term capital gain. to overcome before 31. How many years does the taxpayer have to look back? 32. What is the taxpayer looking for (i.e., what information is needed about prior year Section 1231 gains or losses?) 33. If there were any net Section 1231 losses in prior periods, the taxpayer must those losses in the current year by recharacterizing current year net Section 1232 gain from to to the extent of those prior losses. SUMMARY 34. While Sections 1231, 1245, and 1250 can be a source of confusion, what happens when you understand the role each provision plays in determining the nature of gain and loss from the sale of assets? provision and 35. Tax Geek reminds us that Section 1231 is a Sections 1245 and 1250 are provisions