Terry sells two pieces of equipment used in his business. both are section 1231 assets. one results in a $5,000 gain and the other in a $12,000 loss. assuming there is no section 1245 recapture, how are these transactions treated in terry's tax return?

A net § 1231 gain has to be treated as ordinary income if there are no § 1245 recaptures. The same logic applies to net § 1231 losses, they must be deducted as ordinary losses.

Therefore, Terry's income would increase by $5,000 and decrease by $12,000 resulting in a net deduction of $7,000.

Explanation:

Remember, a corporative education program refers to a program designed for students in college which allows them to apply what they learned in classes to the real working field.

For example, a student in the social science field may desire to work in the operating department of a financial institution hoping to learn how a financial institution works in the real world.