Question

Colossus has the gains and losses shown below. There are $3,000 of § 1231 lookback losses. What is Colossus’ net long-term capital gain/loss? (15 points)Holding Period/PropertyCharacter of Gain or LossAmountLong Term/vacant land§ 1231 gain$7,000Long Term/business equipment§ 1245 gain3,200Long Term/publicly traded stock Long-term capital gain 890Short Term/publicly traded stock Short-term capital loss(1,870)

Answer 1

1231 net gain	Amount
Long Term/vacant land§ 1231 gain	7,000
Long Term/business equipment§ 1245 gain	3,200
Less look back ordinary income	(3,000)
Net 1231 gain	7,200
Net long - term capital gain	Amount
Long Term/publicly traded stock Long-term capital gain	890
Net 1231 gain	7,200
LTCG before loss set-off	8,090
Less short-term capital loss	(1,870)
Net Long-term capital gain	6,220