Business & farm

Thanks for your response. 

While there isn't any non-recaptures 1231 losses that carried over, but I do have Unallowed Passive Losses in form 8582. When I Report Carryovers, I entered the negative amount in Box 2a and verified I see the tax amount decrease as ordinary income rate. but overall, the rest of gain is still in tax braket of ordinaray income.