An Individual Had the Following Gains and Losses During 2014

question 122

Multiple Choice

An individual had the following gains and losses during 2014 on property held for the long-term holding period: sale of Orange common stock ($8,000 gain) ; sale of real property used in the taxpayer's business ($1,800 loss) ; destruction of real property used in the taxpayer's business by fire ($1,000 loss) . Which of the following statements is correct?

• A) The fire loss would reduce the real property sale loss.
• B) The fire loss would reduce the stock sale gain.
• C) The sale of real property loss would be netted against the stock sale gain.
• D) The sale of real property is a § 1231 loss.
• E) None of the above.

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