In 2015, Jim Had a $5,000 Net Section 1231 Gain

question 47

Multiple Choice

In 2015, Jim had a $5,000 net Section 1231 gain. In 2017, Jim reported a Section 1231 loss of $12,000. In 2018, Jim has a $15,000 net Section 1231 gain. He had no other sales of property in 2018. What is Jim's ordinary income from his 2018 property transactions?

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

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Definitions:

Macroeconomics

The branch of economics that studies overall economic dynamics, such as total national output, income, unemployment, and inflation.

Microeconomics

The branch of economics that studies individual, household, and firm behavior in decision making and allocation of resources.

Aggregate Markets

The entirety of all buyers and sellers in the economy, engaging in the trade of goods and services summed across all individual markets.

Unintended Consequences

The unexpected and unplanned results of a decision or action that may not align with the original goals.