On December 31, 20X1, cash basis taxpayer Alice sells property and receives a secured note, due in 20X5. The face of the note is $10,000 and the FMV of the note is $8,000. Alice's basis in the sold property is $5,000. Assume Alice elects out of Sec. 453.  How much gain does Alice have on sale and in which year does she recognize it?

Answer rating: 100% (QA)

In this scenario since Alice is a cash basis taxpayer the gain on the sale will be ... View the full answer