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. (Leave no answer blank. Enter zero if applicable.) Net §1231 Year 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? Ordinary Income_____________
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. (Leave no answer blank. Enter zero if applicable.) Net §1231 Year 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? Ordinary Income_____________
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 31CE
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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. (Leave no answer blank. Enter zero if applicable.)
Net §1231 | |
Year | 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?
Ordinary Income_____________
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