Which of the following is true regarding the... Which of the following is true regarding the sect 1231 look back rule? It only applies when a sect 1231 loss occurs. It only applies when a sect 1231 gain occurs. It only apples when a sect 1231 gain occurs and there is a nonrecaptured sect 1231 loss in the prior five years It only applies when a sect 1231 gain occurs and there is a nonrecaptured sect 1231 gain in the prior five years None of choices are correct