Maria meets all of the requirements of § 1237 (subdivided realty). in 2016, she begins selling lots and sells four separate lots to four different purchasers. she also sells two contiguous lots to another purchaser. the sales price of each lot is $30,000. maria's basis for each lot is $15,000. selling expenses are $500 per lot. a. what are the realized and recognized gain? the realized gain is $ 87,000 and recognized gain is $ 87,000 . feedback congress has often expanded the § 1221 general definition of what is not a capital asset. b. what is the nature of the gain (i. e., ordinary income or capital gain)? the gain is considered a long-term capital gain. c. assume instead that the lots sold to the fifth purchaser were not contiguous. if the lots sold to the fifth purchaser were not contiguous, maria would have $ ? ? ordinary income, and the $ ? ? gain would be long-term capital gain.