Question - Mel Testa recognized gains of $40,000 on stock sales made early in Year 1. On November 1, Year 1, he sells a parcel of land he holds as an investment and realizes a loss of $40,000. On November 29, Year 1, he buys a parcel of land adjoining the parcel he sold. The two parcels are identical in size. How much of a loss may Mel claim on his November 1, Year 1, sale?
A. $0
B. $20,000
C. $40,000
D. $80,000