Carla was the owner of vacant land that she was holding for investment. She paid $2 million
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Raymond gave Carla $836,000 for an option on her land in 2016. The option was good for two years and gave Raymond the ability to purchase Carla's land for $4,765,000. The freeway was not approved by the government, and Raymond's option expired in 2017. Does Carla have $836,000 of long-term capital gain upon the expiration of the option? Explain.
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Related Book For
South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337386173
21st Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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