Investors & landlords

I don't understand.  Why would the basic be different depending whether it is a gain or a loss?

 

But, the original question was this:

Do you agree that I should treat the property as a rental for both years?

 

I've just learned that I am not entitled to capital gains treatment because the property was rented for less than 12 months.  However, because there will be a loss, I guess that doesn't matter.