You signed a contract 5 years ago to sell all the timber on your land for $500,000. You cut your timber this year. You have a total tax basis of $120,000 in the timber. On Jan 1 FMV for timber is $450,000. How much of the gain is considered ordinary income?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
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You signed a contract 5 years ago to sell all the timber on your land for $500,000. You cut your timber this year. You have a total tax basis of $120,000 in the timber. On Jan 1 FMV for timber is $450,000. How much of the gain is considered ordinary income?
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