Revor holds an acre of land strictly for investment. The acreage is near a highway junction and has the potential of being worth a substantial amount of money in the future. Trevor purchased the land nine years ago for $375,000 and currently has a $93,500 mortgage on the property. The funds from the mortgage were used to raze the property and make the land more desirable for investors. R. Braxton purchases the land from Trevor for cash of $299,500, assumes the mortgage of $93,500 and other consideration worth $82,000. Trevor’s marginal rate is 35%.
Compute the gain or loss on the property?
the type of gain or loss?
the tax?