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:

Learning Disabilities

A group of disorders characterized by inadequate development of specific academic, language, and speech skills.

Social Skills

The abilities used by individuals to interact and communicate with one another effectively, including verbal and non-verbal communication.

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The process of providing corrective education or training to improve skills in individuals who are lacking in certain areas.

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A learning disorder characterized by difficulty with reading, spelling, and writing, unrelated to the individual's intelligence level.