During 2013,Thomas has a net Section 1231 gain of $57,000.In 2012,Thomas reported a net Section 1231 loss of $60,000.What is the character of the 2013 gain?
A)$60,000 long-term capital gain.
B)$60,000 ordinary gain.
C)$57,000 ordinary gain.
D)$57,000 long-term capital loss.
E)$57,000 long-term capital gain.

Question

Quizplus · Accepted Answer

The net Section 1231 gain of $57,000 in 2013 is treated as ordinary income to the extent of the unrecaptured Section 1231 loss of $60,000 from 2012.

During 2013,Thomas Has a Net Section 1231 Gain of $57,000