Mark Owns an Unincorporated Business and Has $20,000 of Section

question 70

True/False

Mark owns an unincorporated business and has $20,000 of Section 1231 gains and $22,000 of Section 1231 losses.He must report a capital loss of $2,000 on his tax return.

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Definitions:

Zero Balance Accounts

Bank accounts that maintain a balance of zero by automatically transferring funds to cover charges or replenishing from another account.

Concentration Banking

Employing one bank to manage the balances in remote accounts. Balances are generally swept into the concentration bank daily.

Wire Transfers

Electronic transfers of funds across a network administered by banks or transfer service agencies globally.

Average Collection Period

The average number of days it takes a company to collect payments from its credit sales.