Question No. 6. (a) Seller agrees to sell land to Buyer who puts cash in an amount equal to the value of the land into an escrow account. Seller did not use the land in a trade or business, but only held the land hoping it would increase in value. The escrow provides for Seller to select commercial property equal in value to the land. (The Seller will rent the commercial property to other businesses). Buyer will then acquire the commercial property with the escrowed cash and transfer the commercial property to Seller. Seller fails to find adequate property and the deal collapses. One year after the escrow account is opened, Seller selects other commercial property that Buyer acquires with the escrowed cash and transfers it to Seller in exchange for the land

Discuss the income tax consequences, if any, to Seller. Is there anything that you would have advised Seller to do differently? What? Why? Discuss and explain