 Thus, section 1231 does not apply to gains and losses resulting from casualties and thefts if the losses exceed the gains.The practical effect of this subsection is that net losses from such involuntary conversions will be treated as ordinary income (abolished by s1(2) Law Reform (Succession) Act 1995 in intestacy cases from 1 January 1996).In English law, Hotch-pot or hotch-potch was the name given to a rule of equity whereby a person, interested along with others in a common fund, and having already received something from the same interest, is required to offset what has been so acquired when his share of the common fund is considered, on pain of being excluded from the common fund distribution.