I have a situation where a client bought a discounted note from the bank 4 years ago at $240,000 and this and he has been collecting interest on the note for 4 years.  Now the note becomes due and he will get $290,000.  Is this a capital gain item or an ordinary income item for the difference in the basis and sale price.  They are in the business of financing and investing.  I would like to know what the community thinks about this.