Please show an explanation within the actual Schedule D form.

Download the Schedule D of 1040 for 2021(opens in a new tab).

Given the following information, complete through Part III of Schedule D.

Nicholas Jack with social security number 555-25-5566.

He has an STCL carryover of $250 from last year.

Land was sold for $40,000. The land was received as a property settlement on January 10, 2021, when the lands FMV amounted to $35,000. His ex-wifes basis for the land, purchased on January 10, 2004, was $20,500.

Marketable securities held as an investment were sold for $25,000. The securities were inherited from his uncle, who died on April 12 of the current year when FMV of the securities was $26,000. The uncle purchased the securities on July 12, 2000, for $10,000.