In March of 2023, Taxpayer sold land he inherited from Grandfather earlier that same year. At the date of Grandfather's death, Grandfather's adjusted basis in the land was $90,000 and the fair market value of the land was $160,000. Taxpayer sold the land for $200,000 and paid $5,000 in selling expenses. Determine the amount and character of the gain Taxpayer realizes on the sale.
In March of 2023, Taxpayer sold land he inherited from Grandfather earlier that same year. At the date of Grandfather's death, Grandfather's adjusted basis in the land was $90,000 and the fair market value of the land was $160,000. Taxpayer sold the land for $200,000 and paid $5,000 in selling expenses. Determine the amount and character of the gain Taxpayer realizes on the sale.
$35,000 long-term capital gain
$110,000 short-term capital gain
$105,000 long-term capital gain
$105,000 short-term capital gain
$35,000 short-term capital gain
$110,000 long-term capital gain