Hans runs a sole proprietorship. Hans has reported the following net §1231 gains and losses since he began business. Net §1231 gains shown are before the look-back rule. Note: Leave no answers blank. Enter zero if applicable. Year Net §1231 Gains/(Losses) Year 1 $ (68,0
Hans runs a sole proprietorship. Hans has reported the following net §1231 gains and losses since he began business. Net §1231 gains shown are before the look-back rule. Note: Leave no answers blank. Enter zero if applicable. Year Net §1231 Gains/(Losses) Year 1 $ (68,0
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 53P
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Question
Hans runs a sole proprietorship. Hans has reported the following net §1231 gains and losses since he began business. Net §1231 gains shown are before the look-back rule.
Note: Leave no answers blank. Enter zero if applicable.
| Year | Net §1231 Gains/(Losses) |
|---|---|
| Year 1 | $ (68,000) |
| Year 2 | 16,500 |
| Year 3 | 0 |
| Year 4 | 0 |
| Year 5 | 11,200 |
| Year 6 | 0 |
| Year 7 (current year) | 51,500 |
b. Assume that the $51,500 net §1231 gain occurs in year 6 instead of year 7. What amount of the gain would be treated as ordinary income in year 6?
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ISBN:
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Author:
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Publisher:
CENGAGE LEARNING - CONSIGNMENT