Valerie Villane incurred the following gains and losses during 2012: Loss resulting from theft of a diamond ring held two years ($1,000) Loss on the sale of a typewriter used in her business for ﬁve years ($250)
Gain on the sale of an adding machine used in her business for
Two years (in addition to recapture)
What is Valerie's net Section 1231 gain or loss for 2012?
$500

Question

Quizplus · Accepted Answer

the $250 loss on the sale of the typewriter and the $500 gain on the sale of the adding machine is netted to give a $250 gain on the second netting (i.e, 1231 netting).

Valerie Villane Incurred the Following Gains and Losses During 2012