Rich Uncle died on April 1, 2020, leaving you his mansion. After resolving all of the legal complications with the estate, his executor finally delivered the deed to you on November 1, 2020. You sold the mansion on December 1, 2020, for $6M.

Here are some additional facts:

• Rich Uncle had paid $2M for the mansion in 1999.
• The mansions FMV was $5M on the day Rich Uncle died.
• The mansions FMV was $5.5M on the alternate valuation date.
• Rich Uncles executor did elect the alternate valuation date.

What amount and character of gain, if any, would you report on your 2020 tax return on these facts? Explain.