An Individual Had the Following Gains and Losses During 2013

question 110

Multiple Choice

An individual had the following gains and losses during 2013 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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Definitions:

Over-optimism

The tendency to be too confident or hopeful about future events or outcomes, often leading to underestimating risks.

Prospects

Potential customers or clients who have shown interest in a company's product or service.

Abilities

The inherent physical or mental capacities individuals possess, which can vary widely and impact performance in various tasks or occupations.

CEO

Chief Executive Officer, the highest-ranking individual in a company or organization, responsible for making major corporate decisions.