The Section 1231 Netting Procedure Involves Several Steps

question 94

Multiple Choice

The Section 1231 netting procedure involves several steps. What is the proper order of these steps?
I.All Section 1231 gains and losses for the year are netted.
II.All casualty (theft) gains and losses on Section 1231 property are netted.
III.Current-year net Section 1231 gain is netted against any Section 1231 ordinary loss deductions taken in the previous 5 years.
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• A)Statements I, III, and II.
• B)Statements II, I, and III.
• C)Statements III, I, and II.
• D)Statements III, II, and I.
• E)Statements I, II, and III.

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Definitions:

Seniority

The concept of prioritizing employees for benefits, promotions, or layoffs based on their length of service or tenure with an organization.

Less Competent Employees

Workers who possess lower levels of skill, knowledge, or ability compared to the expected standard or their peers.

More Competent Employees

Workers who possess greater skills, knowledge, and ability to perform their job effectively compared to others.

Succession Planning

The process of identifying and developing new leaders who can replace old leaders when they leave, retire or pass away.