Reference no: EM133117002

Question - An individual purchased a house in 2019 for $60,000 with the intention of holding it while the value appreciates, then selling it at a profit. In 2020 the individual purchased an apartment building for $150,000 with the intention of renting the apartment units. In 2021, before the apartment units were rented, the individual accepted an offer from a buyer and sold the apartment building for $200,000. Also in 2021 the individual sold the house, which had not been used as a residence or rented, for $90,000. What is the effect of these two sales on the individual's net income for tax purposes for 2021?