In 2014,Niveen purchased land for $88,000 for use in her landscape business.She sold it in 2017 for $97,500.If Niveen has no other sales of business or trade property,how will this gain be taxed?
A)$9,500 short-term capital gain.
B)$9,500 long-term capital gain.
C)$9,500 ordinary income.
D)$9,500 Section 1231 gain.

Question

Quizplus · Accepted Answer

Since Niveen held the land for more than a year before selling it, the gain is considered a long-term capital gain. Therefore, the gain is taxed at the long-term capital gains tax rate, which is generally lower than the ordinary income tax rate.

In 2014,Niveen Purchased Land for $88,000 for Use in Her