Sol purchased land as an investment on February 12, 2018 for $85,000. On January 31, 2019, Sol sold the land for $90,000 cash. What is the nature of the gain or loss?

Question

Quizplus · Accepted Answer

The gain is considered short-term because the land was held for less than one year (from February 12, 2018, to January 31, 2019) before being sold for a profit of $5,000 ($90,000 - $85,000).

Sol Purchased Land as an Investment on February 12, 2018