Problem: Henry is a sole proprietor and sells the following assets in 2023:
Furniture: 7,000 gain
Computers: 5,000 gain
Equipment: 21,000 gain
Land: 16,000 loss
Henry's business began in 2017. Since that time, Henry has reported the following net §1231 gains and losses:
2017: 4,000 loss
2018: 3,000 loss
2019: None
2020: 2,000 Gain
2021: 5,000 loss
2022: None
Questions
Q1. What is Henry's net §1231 gain/loss in 2023?
Q2. How much (if any) should Henry report at ordinary income from the above transactions in 2023?
Q3. How much (if any) should Henry report as long-term capital gain from the above transactions in 2023?