1. In 2017, Marty purchased 10 acres of investment land for $40,000 in total, and spent $7,000 in total subdividing the land into 4 parcels and $14,000 in total installing water, sewer, and electric lines to each parcel. At that point in time, he had invested a total of $61,000 in the development. In 2017, 2018, and 2019, Marty paid real estate taxes of $1,600 each year on the parcels (4 parcels at $400/year). He planned to sell each parcel for $20,000, but none were sold until December 31, 2019, when the first parcel was sold for $20,000 cash. What are the 2017, 2018, and 2019 tax consequences for Marty?