Q: I own 100 acres of land that two companies want to develop. One wants to purchase it outright; the other wants to enter into a joint venture with me. What do you recommend?

A: This depends, in the first instance, on your financial situation, your goals and your predilections. Do you want a real estate investment with a continuing income? Or do you want to get your money out (minus taxes, of course) and invest in something else?

In the second instance, it's going to depend on how attractive the joint venture appears to be. On something as important as this, consult a real estate professional who can analyze the alternatives and make feasible suggestions. Get the analysis and conclusions in writing.

Q: In a recent column you stated that the interest paid on Treasury bills is exempt from state and local taxes. I thought all interest was taxable.

A: This exemption is provided for in a statute, 31 United States Code 742.

CORRECTION: In last week's Snyder column, the second question was concerned with the sale of a "principal residence." The answer pointed out that if the seller met the criteria of Internal Revenue regulation 1.121-5 (g), the seller could use the $100,000 one-time elective exclusion as well as the "nonrecognition of gain" provision when the purchase price of the new home equals or exceeds the adjusted sales price of the former one. Using the figures given in the question, however, there would be a tax payable on the $50,000 gain. In such a circumstance, computations to determine whether there's taxable gain and how much, are made on Internal Revenue Service Form 2119.

Earl A. Snyder, a Realtor, appraiser and attorney who specializes in investment real estate appraising and counseling, answers questions only in this column. His address: 14909 Kalmia Dr., Laurel, Md. 20810.