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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. Note: Leave no answer blank. Enter zero if applicable. Year Net 1231 Gains or (Losses)
Year 1 $ (65,000)
Year 2 15,000
Year 3 0
Year 4 0
Year 5 10,000
Year 6 0
Year 7 (current year) 50,000
Assume that the $50,000 net 1231 gain occurs in year 6 instead of year 7. What amount of the gain would be treated as ordinary income in year 6?
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