Sol purchased land as an investment on January 12, 2015 for $85,000.On January 31, 2018 Sol sold the land for $90,000 cash.What is the nature of the gain or loss?

Name: Sol purchased land as an investment on January 12, 2015 for $85,000.On January 31, 2018 Sol sold the land for $90,000 cash.What is the nature of the gain or loss?
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Question

Sol purchased land as an investment on January 12, 2015 for $85,000.On January 31, 2018 Sol sold the land for $90,000 cash.What is the nature of the gain or loss?​

Quizplus · Accepted Answer

Since the asset was held for more than one year (from January 12, 2015, to January 31, 2018), the gain realized on the sale of the land is a long-term capital gain.

Sol Purchased Land as an Investment on January 12, 2015