Steven Stronghold had a Section 1231 net gain of ($ 25,000) in 2018 . His previous net

Question:

Steven Stronghold had a Section 1231 net gain of $\$ 25,000$ in 2018 . His previous net Section 1231 items were $\$ 12,000$ in $2011,(\$ 8,000)$ in $2012,(\$ 6,000)$ in $2013,(\$ 3,000)$ in $2014,(\$ 1,000)$ in 2015 , $(\$ 4,000)$ in 2016 , and $(\$ 1,000)$ in 2017.

a. How is Steven's $\$ 25,000$ net Section 1231 gain treated in 2018 ?

b. If Steven's 2018 net Section 1231 gain was $\$ 12,000$ instead of $\$ 25,000$, how would it be treated?

Fantastic news! We've Found the answer you've been seeking!