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On October 1, 2008, Gerry died owning undeveloped land held

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for investment with a fair...
On October 1, 2008, Gerry died owning undeveloped land held for investment with a fair market value of $1,000,000 that he purchased in 1994 for $750,000. Bob inherited the land from Gerry. Bob also holds the land for investment. When Bob sells the land for $1,200,000 on August 20, 2009, he must recognize a:



a. Short-Term Capital Gain of $200,000.

b. Long-Term Capital Gain of $200,000.

c. Short-Term Capital Gain of $450,000.

d. Long-Term Capital Gain of $450,000.
Submitted: 6 years ago.Category: Tax
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4/1/2011
Tax Professional: Richard, Tax Attorney replied 6 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,810
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Good evening. Your answer is B.

 

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,810
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