In 2010,Jim Had a $5,000 Net Section 1231 Gain

question 78

Multiple Choice

In 2010,Jim had a $5,000 net Section 1231 gain.In 2012,Jim reported a Section 1231 loss of $12,000.In 2013,Jim has a $15,000 net Section 1231 gain.He had no other sales of property in 2013.What is Jim's ordinary income from his 2013 property transactions?

• A)$ - 0 -
• B)$ 7,000
• C)$ 3,000
• D)$12,000
• E)$15,000

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Definitions:

Moving Expenses

Costs incurred for relocating, which in certain situations, may be deductible for tax purposes.

Above-the-line Deduction

A deduction from gross income that can be taken without itemizing deductions, reducing adjusted gross income, and available to all taxpayers who qualify.

Moving Expenses

Costs incurred by an individual or household for relocating to a new residence, which can sometimes be deducted for tax purposes if they are related to starting a new job.

Qualified Education Loans

Loans taken out exclusively for paying higher education expenses that are eligible for certain tax benefits.