Irby Inc.was incorporated in 2011 and adopted a calendar year.Here is a schedule of Irby's net Section 1231 gains and (losses)reported on its tax returns through 2016. In 2017,Irby recognized a $14,750 gain on the sale of business land.How is this gain characterized on Irby's tax return?

Question

Irby Inc.was incorporated in 2011 and adopted a calendar year.Here is a schedule of Irby's net Section 1231 gains and (losses)reported on its tax returns through 2016.   In 2017,Irby recognized a $14,750 gain on the sale of business land.How is this gain characterized on Irby's tax return?

Quizplus · Accepted Answer

According to the schedule provided, Irby has had net Section 1231 gains in every year from 2011 to 2016. Therefore, any Section 1231 gains recognized in 2017 would also be classified as Section 1231 gains. The gain of $14,750 would be reported as a $14,750 Section 1231 gain on Irby's tax return.

Irby IncWas Incorporated in 2011 and Adopted a Calendar Year