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During 2016, William acquired a six-unit apartment building for $315,000 with the intention of operating it as a rental property. Three weeks after his purchase,
During 2016, William acquired a six-unit apartment building for $315,000 with the intention of operating it as a rental property. Three weeks after his purchase, he received an unexpected offer to purchase the building for $387,000. He accepts the offer.
Should the $72,000 be treated as a capital gain or as business income? Why?
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