What amount if any of the current year (year 7) $113,000 net sec 1231 gain is treated as ordinary income?
Morgan’s Water World (MWW), an LLC, opened several years ago. MWW has reported the following net sec 1231 gains and losses since it began business. Net sec 1231 gains shown are before the look-back rule.
Year Net Sec 1231 gains and losses
Year 1 $(11,000)
Year 2 $5,000
Year 3 $(21,000)
Year 4 $(4,000)
Year 5 $17,000
Year 6 $(43,000)
Year 7 (Current Year) 113,000
What amount if any of the current year (year 7) $113,000 net sec 1231 gain is treated as ordinary income?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
