An Individual Taxpayer Has the Gains and Losses Shown Below

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The Answer is The taxpayer has a net long-term capital gain of $2,890 and a net short-term capital loss of $1,870.The $3,200 of § 1245 gain is ordinary income and does not affect the net long-term capital gain computation.Since there is $3,000 of § 1231 lookback loss,$3,000 of $5,000 § 1231 gain is treated as ordinary income and the remaining $2,000 of § 1231 gain is treated as long-term capital gain.The $1,870 of short-term capital loss offsets the $2,890 of long-term capital gain,resulting is a net capital gain of $1,020 (0%/15% gain).

An Individual Taxpayer Has the Gains and Losses Shown Below

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An Individual Taxpayer Has the Gains and Losses Shown Below

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Correct Answer:VerifiedShow Answer

Correct Answer:
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