On April 3, 2009, Arlene sells land that she holds as an investment to a construction company. The deed conveying the land to the construction company contains a covenant restricting construction on the land to single-family residences. The market for apartment buildings picks up in 2010, and the construction company pays Arlene

$5,000 on August 10, 2010, to release the restrictive covenant so that it can build apartments on the land. Determine the income tax treatment of the $5,000 payment Arlene receives for the release of the restrictive covenant.

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