I:13-40 Nonrecaptured Net Sec. 1231 Losses. Dillion has taxable income of less than $300,000 without considering the $53,000 Sec. 1231 gain mentioned below, and he has a tax rate of 35%. He has $40,000 of net nonrecaptured Sec. 1231 losses at the start of the year. During the year, he recognizes a Sec. 1231 gain of $53,000 from the sale of land. As a result of the sale, how much does Dillion’s tax liability increase?