Question

Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 2012.
a. In 2015, Corporation Q sold only one asset and recognized a $4,000 Section 1231 gain. How much of this gain is treated as capital gain and how much is ordinary?
b. In 2016, Corporation Q recognized a $16,700 Section 1231 gain on the sale of one asset and a $2,000 Section 1231 loss on the sale of a second asset. How much of the $14,700 net gain is treated as capital gain and how much is ordinary?


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  • CreatedNovember 03, 2015
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