Swift, LLC purchased equipment (7-year property) for use in its business on October 15, 2021. This was the only asset Swift, LLC acquired during 2021. The cost of the equipment was $2,000,000. In addition to the purchase price, Swift, LLC incurred the following additional costs related to the equipment in 2021:

• $20,000 to ship the equipment to Swift LLCs business location in Chicago, Illinois;
• $10,000 for installation costs to get the equipment operational in Swift LLCs business;
• $120,000 for sales tax on the purchase of the equipment;
• $50,000 for an annual tune up on the equipment

If Swift, LLC sells the equipment for $400,000 on June 15, 2025, the Section 1231 look-back rule does not apply to the company and the company does not sell any other assets in 2025, what is the character of the gain/(loss) that Swift, LLC will report on its federal income tax return in 2025?

Answer: