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Gary sold a building (AB $500,000;AD $400,000) and land (AB $40000) (both purchased in 2006) to a corporation in which he was 60% shareholder. The
Gary sold a building (AB $500,000;AD $400,000) and land (AB $40000) (both purchased in 2006) to a corporation in which he was 60% shareholder. The selling price was $1,000,000, allocated 20% to the land and 80% to the building. what is the character of the gain on the sale?
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