Samuel Samuelson's net Section 1231 gains and losses since 2007 are as follows: 2007-$50,000 loss; 2008- $15,000 loss; 2009-$20,000 loss; 2010-$10,000 loss; 2011-$40,000 gain; 2012-$50,000 gain. How much of Samuel's 2012 net Section 1231 gain will be recaptured as ordinary income?

Question

Quizplus · Accepted Answer

$50,000. $55,000 of losses were available to recapture the entire gain as ordinary income ($50,000 + $15,000
+ $20,000 + $10,000 − $40,000).

Samuel Samuelson's Net Section 1231 Gains and Losses Since 2007