Each week, you will be asked to respond to the prompt or prompts in the discussion forum. Your initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers.

Four property questions to be addressed for income tax are:

Is there a realized gain or loss?
If so, is the realized gain or loss recognized?
If the realized gain or loss is recognized, is it classified as ordinary or capital?
What is the basis of replacement property, if any, that is acquired?
Consider the following scenario: Ian invests in land and Jen invests in taxable bonds. The land appreciates by $8,000 each year, and the bonds earn interest of $8,000 each year. After holding the land and bonds for five year, Ian and Jen sell them. There is a $40,000 realized gain on the sale of the land, and no realized gain or loss on the sale of the bonds.

Are the tax consequences to Ian and Jen the same for each of the five years? Explain.