Jeff has always been a successful businessman. Several years ago he purchased what he thought was prime property in Louisiana for $100,000. Unfortunately, he didnt realize the property was pure swamp land and completely uninhabitable by anyone. Shortly after he purchased the property, Jeff realized the investment was a flop! To hide his embarrassing investment, he decided to give the property to his cousin Rustin as a graduation present when Rustin graduated from LSU (Geaux Tigers!). When Jeff gave the property to Rustin, the value of the property had fallen to $80,000 and Jeff paid gift tax on the transfer of $26,400. After six months of owning the property, and sharing his bed with alligators, Rustin decided to move back to the city. Luckily, he sold the property a week later to an old cajun named Boudreaux for $90,000. What is Rustins loss on the sale of the land?

A. $7,400 short term capital loss

B. $10,000 long term capital loss

C. No gain or loss will be recognized.

D. $10,000 short term capital loss