Which one of the following transactions is most likely to be treated as business income for tax purposes? Which one will likely be treated as a capital gain? Justify your position by briefly explaining the deciding factors in the tax treatment re: Capital vs. Income. 1. In Year 1, Bill purchased a parcel of land for $100,000 with the intention of building a rental property. In Year 5, Bill sold the rental property for $500,000. 2. In Year 1, Martha purchased a parcel of land for $100,000 with the intention of holding it until the land increased in value and could be sold at a gain. In Year 5, Martha sold the property for $500,000.