I think I may have made a mistake in a prior year when disposing assets.   Capital assets depreciated, business use, held for over 1 year.  There were no gains in that year or the current year.   When client sold these assets at a loss I  entered the disposition on the asset entry worksheets.  They carried forward to form 4797 part I.  In the current year they are showing as nonrecaptured net section 1231 losses and are not reducing income.   I am pretty sure they can be used as ordinary losses vs. capital losses.  I think I should have entered the disposition on the 4797 and elected part II.  I don't mind amending the prior year but I just want to make sure I'm right in my thinking.  I did forgo the NOL Carryback.   Thanks