Description Gain or Depreciation (Loss) Ordinary 1231 income or Recapture Short Term Total Long Term Long term Long term 28% 25% Long term 0/15/20% (Loss) a. Land 0 0 0 $ 0 $ 0 0 b. Iron Byron c1. Sofa c2. Chair c3. Marketable securities c4. Land for investment c5. Investment property d1. Building d2. Land 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1231 netting Step1 depreciation recapture - ordinary income Step 2-$1231 Gain or Loss netting - gains or losses exclusive of $1250 - Unrecapture $1250 Step 3 - lookback rule - apply to unrecapture $1250 first Ordinary income Remaining unrecapture $1250 Remaining gain - 0/15/20 Capital gain netting: Long term capital loss carryover Reclassified 0 0 0 0 0 0 0 0 0 0