Question

Vanessa Carlysle has the following gains and losses: $105,000 § 1231 gain$103,000 § 1231 loss$15,000 §1231 lookback loss$85,000 § 1245 gain$20,000 long-term capital gainWhat is Vanessa’s net long-term capital gain, 1231 gain and ordinary income for the current year and what carryforwards does he have to the subsequent year, if any?

Answer 1

Net 1231 gain:

1231 gain	105,000
1231 loss	(103,000)
1245 gain	85,000
Less ordinary income from 1231 look back	(15,000)
Net 1231 gain	72,000

Ordinary income = $15,000.

Net long-term capitgal gain:

Long term capital gain	20000
Add:Net 1231 gain	72,000
Net long-term capital gain	92000

No carry forwards to next year.