Question: Which statement is true under the rules for nonrecaptured section 1231 losses? Section 1231 gain is treated as ordinary income until losses from the five

Which statement is true under the rules for nonrecaptured section 1231 losses? Section 1231 gain is treated as ordinary income until losses from the five prior years are recaptured. Section 1231 losses are treated as ordinary losses until gains from the five prior years are recaptured. Section 1231 gain is recorded by year and retained for five years to offset section 1231 losses incurred over these five future years. Section 1231 losses are treated as ordinary losses for five years

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