Lucy owns 450 shares of Linus, Inc. (adjusted basis $220,000). On September 28, 2021, she sells the 450 shares for their fair market value of $204,000. On October 12, 2021, she purchases 500 shares of Linus, Inc. for $221,400. In addition, Lucy received a gift of land in 1986 worth $32,500. The donors adjusted basis was $51,000. Lucy sold the land in 2021 for $85,000.

1. What is the realized gain/loss and recognized gain/loss on the September 28^th sale AND what is the adjusted basis on the 450 shares purchased on October 12?

2. What is the recognized gain or loss from the land transaction in 2021? Assume no gift tax was paid.

3. Find and print the FIRST PAGE only of an IRS regulation that supports your answer to #1.