In 2012, Mika has $60,000 of 1231 gains and $48,000 of 1231 losses. During the prior five years, she had the following 1231 results:
2006 $3,000 1231 loss
2007 $4,000 1231 gain
2008 $5,000 1231 loss
2009 $2,000 1231 gain
2010 $4,500 1231 loss
What are the tax consequences of the 1231 transactions?
a. $12,000 net Sec. 1231 gain taxed as a LTCG
b. $7,500 ordinary income and $4,500 Sec. 1231 gain
c. $12,000 1231 gain taxed as ordinary income
d. $7,500 Sec. 1231 gain and $4,500 ordinary income