Antoinette has the following net § 1231 results for each of the years shown: Tax
ID: 2497139 • Letter: A
Question
Antoinette has the following net § 1231 results for each of the years shown:
Tax Year
Net § 1231 Loss
Net § 1231 Gain
2010
$33,000
2011
$15,000
2012
$3,000
2013
$28,000
2014
$52,000
2015
$12,000
What would be the nature of the net gains in 2013, 2014, and 2015? If an amount is zero, enter 0.
Total
Net § 1231
Gain
Amount
Treated as
Ordinary
Income
Amount
Treated as
Long-Term
Capital Gain
2013
$28,000
_________$
_________$
2014
$52,000
_________$
_________$
2015
$12,000
_________$
_________$
Tax Year
Net § 1231 Loss
Net § 1231 Gain
2010
$33,000
2011
$15,000
2012
$3,000
2013
$28,000
2014
$52,000
2015
$12,000
Explanation / Answer
2013
Remaining Net Section Loss from Previous Five years = 33000+15000+3000 = $51000
so All gain in 2013 will be treated as Ordinary Income
2014
Remaining Net Section Loss from Previous Five years = 33000+15000+3000 = $51000
Net Section GAin from Previous Five Years = 28000 +52000 =$ 80000
So $51000 will be treated as ordinary Income and $1000 as long term Capital gain
2015
Similarly the gain in 2015 will be all treated as Ordinary gain.
Total Net 1231 Gain Amount Treated as Ordianary income Amount Treated as long term capital gain 2013 $28000 28000 Nil 2014 $52000 51000 1000 2015 $12000 12000 NilRelated Questions
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