During the current tax year, the Jeckel Company has the following gains and losses from property transactions: $12,000 Section 1231 gain
$23,000 long-term capital gain
$21,000 Section 1231 loss
$4,000 Section 1231 gain
What is the amount and type of gain or loss reported by Jeckel for the year?
A)$21,000 Section 1231 loss; $39,000 capital gain
B)$16,000 Section 1231 gain; $21,000 Section 1231 loss; $23,000 capital gain
C)$18,000 net capital loss
D)$5,000 net Section 1231 loss; $23,000 capital gain

Question

Quizplus · Accepted Answer

Section 1231 gains and losses are netted against each other. Here, $12,000 gain + $4,000 gain - $21,000 loss equals a $5,000 net Section 1231 loss. The $23,000 long-term capital gain remains unaffected.

During the Current Tax Year, the Jeckel Company Has the Following