A prior Section 1231 loss can change the tax treatment of a property gain years later. Learn how the five year lookback rule works, how intervening gains reduce prior loss balances, how K1 amounts and passive losses affect the calculation, and when current Section 1231 gain becomes ordinary income.

Selling depreciated rental property can create several different types of taxable gain. Learn how Sections 1245 and 1250 work, why rental property depreciation is not simply taxed at 25 percent, and how cost segregation, installment sales, Section 1031 exchanges, related party sales, and suspended passive losses can affect the final tax result.