5. Anwar owns vacant land that he purchased many years ago as an investment. After getting approval to subdivide it into 35 lots, he made minimal improvements and then sold the entire property to a real estate developer. Anwars recognized gain on the sale was $1.2 million. Is this transaction eligible for the real property subdivided for sale provisions? Why or why not?

6. Hubert purchases all of the rights in a patent from the inventor who developed the patented product. After holding the patent for two years, Hubert sells all of the rights in the patent for a substantial gain. What issues does Hubert face if he wants to treat the gain as a long-term capital gain?

14. Olivia wants to buy some vacant land for investment purposes. She cannot afford the full purchase price. Instead, Olivia pays the landowner $8,000 to obtain an option to buy the land for $175,000 anytime in the next four years. Fourteen months after purchasing the option, Olivia sells the option for $10,000. What is the amount and character of Olivias gain or loss?

17. Coline has the following capital gain and loss transactions for 2015.

Short-term capital gain $5,000

Short-term capital loss (2,100)

Long-term capital gain (28%) 6,000

Long-term capital gain (15%) 2,000

Long-term capital loss (28%) (10,500)