Several years ago Nicolas, a timber dealer, purchased a tract of land with a substantial stand of
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Several years ago Nicolas, a timber dealer, purchased a tract of land with a substantial stand of trees on it. The land cost $8,000, and the timber cost $250,000. On the first day of 2021, the timber was appraised at $325,000. In August 2021, Nicolas cut the timber and sold it for $360,000. Nicolas elects to treat the cutting as a sale or exchange under § 1231. What is the amount and character of Nicolas’s gain or loss?
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1231 gain Appraised value of Timber on first day of 2018Adjusted basis 1231 gain 325000250000 75000 Ordinary gain Selling priceAppraised value of Timber on first day of 2018 ...View the full answer
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Related Book For
South-Western Federal Taxation 2022 Individual Income Taxes
ISBN: 9780357519073
45th Edition
Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman
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