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Subject: Business Income Vs. Capital Gain During 2020, Sandra Von Arb acquired a four-unit apartment building for $230,000. While it was her intention to operate

Subject: Business Income Vs. Capital Gain During 2020, Sandra Von Arb acquired a four-unit apartment building for $230,000. While it was her intention to operate the building as a rental property, one month after her purchase she received an unsolicited offer to purchase the building for $280,000. She accepts the offer. Should the $50,000 be treated as a capital gain or as business income? Justify your conclusion

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