I:5-32 Sylvia, a dentist with excellent skills as a carpenter, started the construction of a house that she planned to give to her son as a surprise when he returned from military service overseas. She began construction on March 23, 2021, and finished the house on July 10, 2022, at a total cost of $70,000. Her son is expected to be home on September 1, 2022.

On July 30, 2022, Roscoe offered Sylvia $245,000 for the house and Sylvia considered the offer to be so attractive that she accepted it. She decided that she could purchase a suitable home for her son for about $200,000. What tax issues should Sylvia consider?

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