Irby Inc. was incorporated in 2012 and adopted a calendar year. Here is a schedule of Irby's net Section 1231 gains and (losses) reported on its tax returns through 2017.
In 2018, Irby recognized a $14,750 gain on the sale of business land. How is this gain characterized on Irby's tax return?

Question

Quizplus · Accepted Answer

Irby's Section 1231 losses in 2013 and 2014 were recaptured in 2015 and are not recaptured again in 2018.
 $$\begin{array} { c c c c c c } 
2012 & 2013 & 2014 & 2015 & 2016 & 2017 \
\$ ( 4,900 ) & \$ ( 3,000 ) & \$ ( 7,890 ) & \$ 45,600 & \$ - 0 - & \$ 1,300
\end{array}$$

Irby Inc Was Incorporated in 2012 and Adopted a Calendar Year