This year Jenna had the gains and losses noted below on property, plant and equipment used in her business. Each asset had been held longer than one year. Jenna has not previously disposed of any business assets. Jenna will recognize

Question

This year Jenna had the gains and losses noted below on property, plant and equipment used in her business. Each asset had been held longer than one year. Jenna has not previously disposed of any business assets.  Jenna will recognize

Quizplus · Accepted Answer

The casualty loss on Sec. 1231 (after netting with any other casualty gains and losses) will be treated as ordinary. The condemnation loss will be netted with the Sec. 1231 gain, and the net gain will be treated as a LTCG.

This Year Jenna Had the Gains and Losses Noted Below