Question
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
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 answers blank. Enter zero if applicable.)
| Net 1231 | |
| Year | Gains/(Losses) |
| Year 1 | $(70,000) |
| Year 2 | 17,500 |
| Year 3 | 0 |
| Year 4 | 0 |
| Year 5 | 12,000 |
| Year 6 | 0 |
| Year 7 (current year) | 52,500 |
|
| |
a. What amount, if any, of the year 7 (current year) $52,500 net 1231 gain is treated as ordinary income?
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Finance Fundamentals For Nonprofits
Authors: Woods Bowman
1st Edition
1118004515, 9781118004517
