Which of the following choices BEST describes the process of netting Section 1231 gains and losses? Multiple choice question. Combine the 1231 gains and losses. Then recharacterize all or part of the gain as ordinary income as deemed by Sec. 1245, 291, or 1239. Separate 1231 gains and losses. (1) Losses offset ordinary income; (2) recharacterize part of gain as ordinary income; (3) remainder is taxed at 15%. Recharacterize all or part of the gain as ordinary income as deemed by Sec. 1245, 291, or 1239. Then combine remaining 1231 gains and losses