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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. What is Sarah’s holding period for the farmland? What is the nature of the gain from its disposition?

User Dalius I
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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

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Sarah received a gift of farmland from her father. The land was worth $4,000,000 at-example-1
User Yegle
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