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Tax-Scholar
Tax-Scholar, CPA
Category: Tax
Satisfied Customers: 89
Experience:  Helping customers comply with and plan for income taxes
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I have a section 1231 loss carryover of 38K from 2013. This

Customer Question

I have a section 1231 loss carryover of 38K from 2013. This year I sold a piece of land at a profit and have higher salary income. I'd like to use that loss to often this gain, but turbo tax keeps carrying the loss forward, instead of applying it
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Customer: no
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Submitted: 7 months ago.
Category: Tax
Expert:  Tax-Scholar replied 7 months ago.
Hello and thanks for using Just Answers. The 1231 Loss carryover is a little different than what you are thinking. A 1231 loss is treated as an ordinary loss. This carryover has the effect of treating 1231 gains in the future as ordinary income. Normally 1231 gains would be capital gain. However if you had prior year 1231 losses then the gain is treated as ordinary up to the prior losses. This 1231 carry forward is not like a capital loss carry forward and cannot offset income. Hope this helps. Sounds like turbo tax is doing it correctly.
Expert:  Tax-Scholar replied 7 months ago.
Hello. I just wanted to see if you had any other questions?