Ivan Investor sold a parcel of land during 2019 realizing a $50,000 gain. Ivan has used this

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Ivan Investor sold a parcel of land during 2019 realizing a $50,000 gain. Ivan has used this parcel for a parking lot during the 120 months that he has owned the land. The amount and tax classification oft he gain recognized by Ivan on this sale is:

a. Ordinary income of $50,000

b. A Section 1231 gain of $50,000

c. A Section 1245 ordinary income item of $50,000

d. A Section 1250 ordinary income item of $50,000

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CCH Federal Taxation Basic Principles 2020

ISBN: 9780808051787

2020 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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Question Posted: Feb 19, 2024 04:01 AM

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Ivan Investor sold a parcel of land during 2019 realizing a $50,000 gain. Ivan has used this

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The tax treatment of the gain from the sale of the land would depend on whether the land is consider...View the full answer

CCH Federal Taxation Basic Principles 2020

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