Test Advanced Dispositions: Recapture and Installment Sales (2019) Section 9 Question 22 of 30. Nonrecaptured $1231 losses are applied against the net $1231 gain beginning with: Last year's loss and ending with losses from the fifth previous year. The earliest loss in the five-year period. The next future year's losses. Last year's loss and ending with losses from the third previous year. Mark for follow up