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5. Ryan owns two business warehouses ( 1231 assets). Warehouse A can be sold at a loss of ($60,000), and Warehouse B can be sold

5. Ryan owns two business warehouses ( 1231 assets). Warehouse A can be sold at a loss of ($60,000), and Warehouse B can be sold at a gain of $70,000. Ryan has no nonrecaptured 1231 losses from prior years. The warehouses could be sold at any time (i.e. in separate years) because potential purchasers are abundant. Both warehouses have been held longer than one year. Ryan has a ($30,000) short-term capital loss carryover from a prior tax year and no capital assets that could be sold to generate long-term capital gains. What should Ryan do based upon these facts? (Assume that tax rates are constant, and ignore the present value of future cash flow.)

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