Jackson has always been a successful businessman. Several years ago he purchased what he thought was prime
Question:
Jackson has always been a successful businessman. Several years ago he purchased what he thought was prime property in Louisiana for $100,000. Unfortunately, he did not realize the property was pure swamp land and completely uninhabitable by anyone (except maybe some Cajuns from New Orleans). Shortly after he purchased the property, Jackson realized the investment was a flop! To hide his embarrassing investment, he decided to give the property to his cousin, Sloan, as a graduation present when Sloan graduated from LSU (Geaux Tigers!). When Jackson gave the property to Sloan, the value of the property had fallen to $80,000. Sloan promptly built a house in the middle of the swamp and made his home. After six months of owning the property, and fearing the alligators, Sloan decided to move back to the city. Luckily, he sold the property a week later to an old Cajun man for $75,000.
What is Sloan's loss on the sale of the land?
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman