### Question
Can you define what non-recaptured net section 1231 losses means?


### Answer
**Non-recaptured net section 1231 losses** is defined as the following in *26 U.S.C. § 1231*:

> the excess of—


(A) the aggregate amount of the net section 1231 losses for the 5 most recent preceding taxable years beginning after December 31, 1981, over


(B) the portion of such losses taken into account under paragraph (1) for such preceding taxable years

#### Citation:
  - *26 U.S.C. § 1231*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

