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Nonrecaptured net Sec 1231 Loss

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    Nonrecaptured net Sec 1231 Loss

    When I first see it's loss carryover, I thought it was good for the taxpayer. But then when I read more into it, I found out such loss carryover is actually not beneficial for the taxpayer because nonrecaptured net Sec 1231 loss carryover will convert future long term capital gain to ordinary gain, and therefore taxed at a higher tax bracket.

    Have I understood it correctly?
    Last edited by AccTaxMan; 02-29-2012, 05:24 PM.
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