A taxpayer purchased land in 2008 for $85,000 and sold it in 2017 for $75,000 cash.The buyer also assumed the mortgage of $5,000.What is the amount of gain/loss on the sale of the land?

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The taxpayer has a loss of $5,000 on the sale of the land. The taxpayer's basis in the land is $85,000, and the taxpayer sold the land for $75,000 cash plus the assumption of a $5,000 mortgage. The taxpayer's total proceeds from the sale are $80,000, which is $5,000 less than the taxpayer's basis in the land.

A Taxpayer Purchased Land in 2008 for $85,000 and Sold