Wow - you replied before I had a chance to delete my dumb question.  After dinking around with the program (as if there isn't enough to do on March 28th) I realized when the code says the losses can offset "ordinary" income I took it to mean any kind of income.  It appears the losses will only offset gains from sales of other business property income.  Thank you for taking time to respond. I'll delete the question after I know you received my 'Thank you"