Problem:
Jingie owns two parcels of business land (§ 1231 assets). One parcel can be sold at a loss of $60,000, and the other parcel can be sold at a gain of $70,000. Jingie has no no recaptured § 1231 losses from prior years. The parcels could be sold at any time because potential purchasers are abundant. Jingie has a $35,000 short-term capital loss carryover from a prior tax year and no capital assets that could be sold to generate long-term capital gains. Both land parcels have been held more than one year.
Required:
Question: What should Jingie do based upon these facts? (Assume that tax rates are constant, and ignore the present value of future cash flow.)
Note: Explain all steps comprehensively.