An Individual Taxpayer Who Is Not a Dealer in Real

question 98

Multiple Choice

An individual taxpayer who is not a dealer in real estate plans to subdivide a parcel of land into four lots and sell them at a substantial gain.The parcel of land had been held six years.In order to qualify for capital gain treatment,the individual must satisfy all of the requirements except

• A)the individual must not hold any other real property primarily for sale in the ordinary course of business.
• B)no substantial improvements can be made while holding the lots if the improvements substantially increase the value of the lots.
• C)the parcel of land (or any part of it)cannot have been held primarily for sale to customers in the individual's business.
• D)All of the above criteria must be satisfied to allow capital gain treatment.

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Definitions:

Successful Communication

The process where information is effectively and efficiently conveyed or received as intended.

Other Cultures

The customs, beliefs, arts, institutions, and all other products of human work and thought characteristic of a community or population other than one's own.

Laws

The system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Facial Expressions

The movements of the muscles beneath the skin of the face, conveying emotions, reactions, or intentions.