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Question

1231 Carryover

Forum|Forum|1 year ago
April 9, 2025
1 reply
0 views

So entered a 1231 Carryover on my taxes, but it did not reduce my amount that I owe. I thought it would offset income from the sale of a rental and reduce my obligation. Any insight or suggestions?

Ask the Experts - Tax Due - April 2025

The net 1231 losses are applied over five years soo depending on the timing, you may not be able to utilize them yet.

A net Section 1231 loss occurs when the taxpayer’s aggregate net Section 1231 losses for the five most recently preceding tax years exceed the net Section 1231 losses that were recaptured and applied against any net Section 1231 gains that were recognized during the five most recent tax years.