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
Homework Answers
Section 1231 losses in excess of Section 1231 gains are treated as ordinary losses.
Ordinary loss = $15,000 - $5,000
= $10,000
The answer is D.
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Can you current year, Robert Jones has section 1231 gains
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