Ross would like to dispose of some land he acquired five years ago because he believes that it will not continue to appreciate. Its value has increased by $50,000 over the five year period. He also intends to sell stock that has declined in value by $50,000 during the eight month period he has owned it. Ross has four offers to acquire the stock and land:
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Buyer number 1: |
Exchange land. |
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Buyer number 2: |
Purchase land for cash. |
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Buyer number 3: |
Exchange stock. |
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Buyer number 4: |
Purchase stock for cash. |
Identify the tax issues relevant to Ross in disposing of this land and stock.