etermine ecial treatment - Criteria 3/4. Kate purchased a single piece of property in 2002 for $18,000. In 2005, she divided the property into 10 equal lots. She sold 3 lots in 2017, 4 lots in 2018, and 3 more lots in 2019. Selling expenses on each lot were $1,000. She received $45,000 for each of the 10 lots.
etermine ecial treatment - Criteria 3/4. Kate purchased a single piece of property in 2002 for $18,000. In 2005, she divided the property into 10 equal lots. She sold 3 lots in 2017, 4 lots in 2018, and 3 more lots in 2019. Selling expenses on each lot were $1,000. She received $45,000 for each of the 10 lots.
Chapter16: Property Transactions: Capital Gains And Losses
Section: Chapter Questions
Problem 25P
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Transcribed Image Text:Determine when gains or losses on the disposition of certain assets qualify for
special treatment - Criteria 3/4.
1 Kate purchased a single piece of property in 2002 for $18,000. In 2005, she divided
the property into 10 equal lots. She sold 3 lots in 2017, 4 lots in 2018, and 3 more
lots in 2019. Selling expenses on each lot were $1,000. She received $45,000 for
each of the 10 lots.
Compute the amount of her gain treated as ordinary income in 2019.
oa $6,750
Ob. $5,400
Oc. $3,750
od. $3,000
1.
47
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