Tax Class

Here's yet another post I've been meaning to make for an eternity, but am just now getting around to doing! :)

In my tax textbook, (I told you it was old!!) Prentice Hall's Federal Taxation 2008 for Individuals, it has a paragraph on the bottom of page 13-7 that reads:

Step 3: If a net Sec. 1231 gain is the result of Step 2, determine if the taxpayer has any nonrecaptured net Sec. 1231 losses. Nonrecaptured net Sec. 1231 losses are the excess of aggregate net Sec. 1231 losses for the preceding five years over losses previously recaptured as ordinary income due to the recapture provision of Sec. 1231. Net Sec. 1231 gains to the extent of any nonrecaptured net Sec. 1231 losses are treated as ordinary income. Sec. 1231 gain that is unrecaptured Sec. 1250 gain is first treated as ordinary income to the extent of nonrecaptured net Sec. 1231 losses. Any net Sec. 1231 gain in excess of nonrecaptured net Sec. 1231 loss is treated as a LTCG.

And now you know why I had a semester-long headache!

Hope you're week is going well!