In 2002, Florence purchased 30 acres of land. She has not used the land for business purposes

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In 2002, Florence purchased 30 acres of land. She has not used the land for business purposes or made any substantial improvements to the property. During the current year, she subdivides the land into 15 lots and advertises the lots for sale. She sells four lots at a gain.
a. What is the character of the gain on the sale of the four lots?
b. Explain how the basis of each lot would be determined.

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Federal Taxation 2018 Comprehensive

ISBN: 9780134532387

31st Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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