Question
Andrew Graham had the following recognized gains and losses during 2019: Personal use casualty loss (watch owned 2 years)...... ($400) Section 1231 gain...............................................................$500 Section 1231
Andrew Graham had the following recognized gains and losses during 2019:
Personal use casualty loss (watch owned 2 years)...... ($400)
Section 1231 gain...............................................................$500
Section 1231 loss..............................................................($750)
Net LTGC............................................................................$3,000
Net STLC...............................................................................($2,000)
What are the tax consequences of these gains and losses to Andrew?
Andrew's adjusted gross income is $40,000 without considering the above items.
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