For property questions to be address for income tax is there a realized gain or loss if so is there realized gain or loss recognized if they realized gain or loss is recognized is it classified as ordinary or capital what is the basis of replacement property if any that is acquired consider the following scenario and invest in land and Jen invest in taxable bonds the land appreciates by 8000 each year and the bonds are in interest of 8000 each year after holding the land and bonds for five years in and Jen sell them there is 40,000 realized gain on the sale of the land and no realized gain or loss on the sale of the bonds are the tax consequences to EN and Jen the same for each of the five years explain