Question: Two months after Tim purchased Blackacre for $ 4 0 , 0 0 0 , he died. The fair market value of Blackacre as of

Two months after Tim purchased Blackacre for $

40, 000,

he died. The fair market value of Blackacre as of the date of Tim's death was $

45, 000 .

He left Blackacre to his son, Kelvin. Since Kelvin was the only beneficiary of the estate and there were no estate taxes due, the title to the property was transferred to Kelvin within one month of Tim's death. Two weeks after receiving the title to the property, Kelvin sold Blackacre for $

48, 000 .

What is the amount and type of income that Kelvin will report on the sale?

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