In 2009, Naila purchased land for $77,000 for use in her landscape business. She sold it in 2015 for $83,000. If Naila has no other sales of business or trade property, how will this gain be taxed?

Question

Quizplus · Accepted Answer

Since the land was held for more than one year, the gain will be considered a long-term capital gain and will be taxed at the long-term capital gains rate. The gain is calculated by subtracting the purchase price from the selling price, resulting in a gain of $6,000.

In 2009, Naila Purchased Land for $77,000 for Use in Her