OK -- I will continue to dig in more -- thanks so much for your help and pointing me in the right direction! You are putting my mind at ease a bit more.
From what I can tell this is what is happening. The $6,383 Section 1231gain is
1) Going into Schedule D / Capital Gains, and getting taxed at that rate. I have capital-losses to offset this gain -- so the move here does NOT cause a change in tax
2) Passive carry-losses from various investments is being realized now, which causes this $6,383 to be taken from income.
Saw this :
"
- Section 1231 gains are given long term capital gain treatment and subsequently reported on Schedule D.
- So prior year 1231 losses are therefore shown on the Form 4797 to offset current year income and reduce the amount of capital gain. The losses are not allowed twice, they are basically used to change the tax rate of the current year gains."
