taxation

income or loss from business

Subject: Business Income Vs. Capital Gain During 2020, Sandra Von Arb acquired a foufunit 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