The question above is for this problem below:
Logan [removed] is a widower whose wife, Sara, died on June 6, 2019. He lives at [removed]. He is employed as a paralegal by a local law firm. During 2021, he had the following receipts:
Details
Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2021. Logan also was the designated beneficiary of an insurance policy on Daniel’s life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2016, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2021, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died.
So do I use Schedule D or not for property sold for $9,000? If so, what is the reasoning?
