Need help computing short-term and long-term gains.
On January 15, Ms. Sack contributed $20,000 cash and investment property (FMV $20,000 and $2,000 basis) to Dylan LLC in exchange for a 10 percent interest. She had acquired the investment property in 1991. On December 3, she sold the interest for $55,500. On the date of sale, Dylan had no hot assets, so Ms. Sack?s entire $33,500 gain was capital gain. How much of the gain is short term and how much is long term?
Short-term gains and losses result when assets are held for one year or less.
<br>Long-term gains and losses result when assets are held for more than one year.
<br>However, the present year is not available in ...