T purchased unimproved land on april 1 of year one and commenced construction of a vecation residence , which was completed on jan 2 of year three, before T even moved in , and on that date, B offered T 600000 for the house and land,. Ts cost baise for the land is 200000 and the the house is 300000 and the proposed purchase price is allocable 250000 for the land and 350000 for the house. It can also be established that construction of the house was 50 per cent completed on jan 1 of year two. What would be the consequences to T if the sale is affected on Jan 2 of year three?