Foreaker LLC sold a piece of land that it uses in its business for $52,000.Foreaker bought the land two years ago for $42,500.What is the amount and character of Foreaker's gain?

Question

Quizplus · Accepted Answer

The gain on the sale of the land would be $9,500 ($52,000 - $42,500). Since the land was held for more than one year and used in Foreaker's trade or business, the gain would be classified as a §1231 gain.

Foreaker LLC Sold a Piece of Land That It Uses