Sol purchased land as an investment on February 12, 2017 for $85,000.On January 31, 2018, Sol sold the land for $90,000 cash.What is the nature of the gain or loss?

Question

Quizplus · Accepted Answer

The land was held for less than a year (from February 12, 2017, to January 31, 2018), so the gain is considered short-term. Since Sol sold the land for more than the purchase price, it is a short-term capital gain.

Sol Purchased Land as an Investment on February 12, 2017