For the last 12 years, George Link has operated his appliance repair business out of a 1,000-square-foot, ground floor office in a four-story commercial building called 129 Main. Last year, George signed a five-year lease with Kramer Management, the owner of 129 Main. This year, Kramer decided to convert the building into condominiums and is negotiating with all its tenants to surrender their leasehold rights and vacate their space in 129 Main. Kramer has offered George a $50,000 cash payment and the use of a 1,200-square-foot office in a new shopping center recently constructed by Kramer. If George accepts Kramer’s offer, he can use the new office rent free for 36 months. The fair rental value of this office is $1,300 per month. What are the tax consequences to George if he accepts Kramer’s offer and moves his business location?