Charles wants to invest $20,000 to generate income taxable at the capital gain rates and not at ordinary income tax rates. He will hold any investment for at least 18 months. Which of the following investments would achieve Charles's goal?
1) Buy an office building and rent space to others.
2) Buy stock in a Fortune 500 company.
3) Purchase a quality artwork with appreciation potential.
4) Purchase a speedboat for personal use only.