Problem $14-56($L$0.4)$

Sarah received a gift of farmland from her father. The land was worth $$4,000,000$ at the date of the gift, had been farmed by her father for $40$ years, and had a tax basis for her father of $$30,000.$ Sarah never farmed the land and sold it eight months after receiving it from her father for $$4,200,000.$

a$.$ What is Sarah's holding period for the farmland?

Because the value of the farmland exceeded the donor's basis at the time of the gift, Sarah's holding period is

b$.$ What is the nature of the gain from its disposition?

Sarah's has from the sale of the farmland of $