Problem: Truman 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 Truman's business began in 2017. Since that time, Truman 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
1. What is Truman's net §1231 gain/loss in 2023?
2. How much (if any) should Truman report at ordinary income from the above transactions in 2023
3. How much (if any) should Truman report as long-term capital gain from the above transactions in 2023