Paul Has a $45,000 Net Section 1231 Gain in the Current

question 16

Multiple Choice

Paul has a $45,000 net Section 1231 gain in the current tax year from his only property transaction.Last year he had a $12,000 net Section 1231 gain,but two years ago he had a $51,000 net Section 1231 loss.If he has no other property transactions in the current year,Paul will treat the net Section 1231 gain as:

• A)$45,000 capital gain
• B)$45,000 ordinary income
• C)$39,000 ordinary income;$6,000 Section 1245 gain
• D)$39,000 ordinary income;$6,000 long-term capital gain
• E)None of the above

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Definitions:

Global Warming

Global warming refers to the long-term rise in Earth's average surface temperature due to human-made emissions of greenhouse gases.

Serious Climate Change

Significant alterations in global or regional climate patterns, typically linked to human activities like fossil fuel burning.

Soil Erosion

The process by which soil is removed from the land by wind, water, or other natural agents, leading to loss of fertility and land degradation.

Miles Per Hour

Measures velocity, indicating how many miles can be covered in the span of an hour.