Homework Answers
From the current year 1231 capital gain can be used to adjust any 1231 loss accounted for past five years.
So from the 1231 gain for 2018 amounting to $50,000 can be adjusted with 1231 Loss reported for 2016 amounting to $35,000. In the year 2017, the 1231 loss of 2016 is adjusted up to 1231 gain reported for $12,000. The 1231 loss to be adjusted from 2016 is ($35,000 - $12,000) = $23,000. 1231 loss from 2016 yet to be adjusted amounting to $23,000 can be adjusted against 2018 1231 gain of $50,000.00.
So the 1231 Gain to be reported for 2018 is ($50,000 - $23,000) =$27,000
Gain treated as long-term capital gain = $27,000
Note the 1231 loss of 2013 is adjusted against the 1231 gain in 2014
Add Answer to:
17-31 Section 1231 Lookback. J has recognized the following 1231 gains and losses in the current...
Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year...
Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1 Year 2 Year 3 $(12,000) 10,500 (14.600) Net Section 1231 loss Net Section 1231 gain Net Section 1231 loss a. In year 4, Roof sold only one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary? b. In year 5, Roof sold one asset and recognized a $9,000...
Can you current year, Robert Jones has section 1231 gains totaling 5000 and section 1231 losses...
Can you current year, Robert Jones has section 1231 gains totaling 5000 and section 1231 losses totaling 15,000 . Which is true ? a. Robert has a $15,000 capital loss and a $5000 ordinary gain for the year b. Robert has a $15,000 ordinary loss and a $5000 capital gain C. Robert has a $10,000 capital loss for the year D. Robert has $10,000 ordinary loss for the year
Salvador has the following net $ 1231 results for each of the years s Tax Year...
Salvador has the following net $ 1231 results for each of the years s Tax Year Net 5 1231 Loss Net 5 1231 Gain 2012 2013 2014 2015 2016 2017 ($88,000) ($21,000) ($7,000) $76,000 $49,000 $26,000 2016 $49,000 What is the nature of the net gain in 2015, 2016, and 2017? If an amount is zero, enter 0.
17-26 Characterizing Assets. Indicate whether the following gains and losses are $ 1231 gains or losses...
17-26 Characterizing Assets. Indicate whether the following gains and losses are $ 1231 gains or losses or capital gains and losses or neither. Make your determination prior to the $1231 netting process. a. Printing press used in A's business; held for three years and sold at a loss. b. Goodwill sold as part of the sale of B's business. c. Vacant lot used five years as a parking lot in C's business; sold at a gain. House, 80% of which...
a)What amount, if any, of the year 7 (current year) $50,000 net 1231 gain is treated...
a)What amount, if any, of the year 7 (current year)
$50,000 net 1231 gain is treated as ordinary income?
b) Assume that the $50,000 net 1231 gain occurs in
year 6 instead of year 7. What amount of the gain would be treated
as ordinary income in year 6?
Saved Required information Problem 3-54 (LO 3-5) The following information applies to the questions displayed below. of Hans runs a sole proprietorship. Hans has reported the following net 51231 gains and...
Accountancy
.Kara sells a piece of construction equipment used in her excavation business (a sole proprietorship) in 2018. The equipment had an initial cost of $86,000 in 2016, and she has taken $70,000 in cost recovery via depreciation on the equipment. Kara sells the equipment for $96,000. What is the AMOUNT and CHARACTER of Kara’s gain or loss for 2018 assuming no 1231 losses were deducted in the past five years? (10 points)b.Refer to part a. Kara had the following net...
During the tax year 2013, Chris had the following capital gains and losses. $5,000 loss from...
During the tax year 2013, Chris had the following capital gains and losses. $5,000 loss from the sale of shares of Big Box, Inc. that he bought in February 2013 and sold on the last day of the year $6,000 loss from the sale of Microstrategy stock that he purchased in December 2008 a $10,000 unrecaptured Section 1250 gain from the sale of real estate a gain of $4,000 from the sale of collectibles that he had owned since 1994...
explain pls! _6. Gary sold business equipment in the current year for a $50,000 net gain...
explain pls!
_6. Gary sold business equipment in the current year for a $50,000 net gain (after taking into account any depreciation recapture). The equipment was originally purchased two years ago and was classified as a Section 1231 asset. This was the only asset sale for the year. Five years ago, Gary had a $60,000 net Section 1231 loss but he has not had any Section 1231 transactions since then. For the current year, Gary's net Section 1231 gain is...
I:5-49 Capital Losses To better understand the rules for offsetting capital losses and how to treat...
I:5-49 Capital Losses To better understand the rules for offsetting capital losses and how to treat capital losses carried forward, analyze the following data for an unmarried individual for the period 2015 through 2018. No capital loss carryforwards are included in the figures. For each year, determine AGI and the capital losses to be carried forward to a later tax year. 2015 2016 2017 2018 ACI (excluding property transactions) 40,000 50,000 60,000 70,000 STCG 4,000 5,000 7,000 10,000 STCL 9,000...
choose the answer and show your work __32. In 2012 Jim invested $50,000 in a Texas...
choose the answer and show your work __32. In 2012 Jim invested $50,000 in a Texas cattle ranch. He has visited the ranch each year for a week of tennis and vacationing. His share of the profit in 2012 was $25,000, in 2013 it broke even and in 2014 his share was $10,000 loss. Jim has not received any financial distribution since his original investment. What is his at risk amount at the end of 2014? a. $50,000 ...
Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1 Year 2 Year 3 $(12,000) 10,500 (14.600) Net Section 1231 loss Net Section 1231 gain Net Section 1231 loss a. In year 4, Roof sold only one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary? b. In year 5, Roof sold one asset and recognized a $9,000...
Salvador has the following net $ 1231 results for each of the years s Tax Year Net 5 1231 Loss Net 5 1231 Gain 2012 2013 2014 2015 2016 2017 ($88,000) ($21,000) ($7,000) $76,000 $49,000 $26,000 2016 $49,000 What is the nature of the net gain in 2015, 2016, and 2017? If an amount is zero, enter 0.
17-26 Characterizing Assets. Indicate whether the following gains and losses are $ 1231 gains or losses or capital gains and losses or neither. Make your determination prior to the $1231 netting process. a. Printing press used in A's business; held for three years and sold at a loss. b. Goodwill sold as part of the sale of B's business. c. Vacant lot used five years as a parking lot in C's business; sold at a gain. House, 80% of which...
a)What amount, if any, of the year 7 (current year)
$50,000 net 1231 gain is treated as ordinary income?
b) Assume that the $50,000 net 1231 gain occurs in
year 6 instead of year 7. What amount of the gain would be treated
as ordinary income in year 6?
Saved Required information Problem 3-54 (LO 3-5) The following information applies to the questions displayed below. of Hans runs a sole proprietorship. Hans has reported the following net 51231 gains and...
explain pls!
_6. Gary sold business equipment in the current year for a $50,000 net gain (after taking into account any depreciation recapture). The equipment was originally purchased two years ago and was classified as a Section 1231 asset. This was the only asset sale for the year. Five years ago, Gary had a $60,000 net Section 1231 loss but he has not had any Section 1231 transactions since then. For the current year, Gary's net Section 1231 gain is...
Most questions answered within 3 hours.
-
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 3 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 3 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 3 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 4 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 4 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 4 hours ago -
A manufacturer of banana chips would like to know whether its
bag filling machine works correctly...
asked 4 hours ago -
Complete the chapter case, "Turnover Analysis".
Chapter Case
Turnover Analysis
You recently completed your company’s new...
asked 4 hours ago -
What is the pH of solutions having the following H3O+
concentrations? Identify each as acidic, basic,...
asked 4 hours ago -
How does over-voltage of the diode usually occur?
asked 4 hours ago -
If you step on a dirty nail, your doctor will recommend you
update your Tetanus vaccination....
asked 4 hours ago -
Suppose that decreases in the price of milk lead to decrease s
in the retail prices...
asked 4 hours ago