In 2011,Joe purchased land for $73,500 for use in his business.He sold it in 2014 for $100,000.What is the gain on the sale before any netting?

Question

Quizplus · Accepted Answer

The gain on the sale is calculated by subtracting the cost of the land from the sale price: $100,000 - $73,500 = $26,500. Since the land was held for use in a business, it is classified as section 1231 property. Therefore, the gain is also classified as section 1231 gain, which is a type of capital gain.

In 2011,Joe Purchased Land for $73,500 for Use in His