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    Gains and Losses: calculations of Sec 1231 and capital items

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    Case A: AGI 40,000
    Net 1231 gains 19000 - 5000 = 14,000
    Adjusted AGI 54,000
    Section 1231 gains are capital gains

    Case B: AGI 40,000
    Net ...

    Solution Summary

    In four separate cases involving Vivian's AGI, business gains and losses plus capital gains and losses cases are analyzed for their combined effects including rights of offset and carry over amounts. A sentence of explanation is added where needed to clarify the calculations.