Question: On May 1, 2015, Kelalani purchased land for $88,000 for use in her business. She sold it on May 1, 2016, for $82,000. If there are no other sales of business or trade property, how is this loss treated for tax purposes on Kelalani's return?
1- $6,000 Section 1231 loss.
2- $6,000 ordinary loss.
3- $6,000 short-term capital loss.
4- $6,000 long-term capital loss.