In 2008,Naila purchased land for $77,000 for use in her landscape business.She sold it in 2014 for $83,000.If Naila has no other sales of business or trade property,how will this gain be taxed?

Question

Quizplus · Accepted Answer

The gain from the sale of the land will be treated as a capital gain because it was held for more than one year. As Naila held the land for six years, this will be a long-term capital gain. The basis of the property was $77,000 and the sale price was $83,000, resulting in a gain of $6,000. Therefore, the gain will be taxed as a long-term capital gain.

In 2008,Naila Purchased Land for $77,000 for Use in Her