Dan acquired rental property in June 2008 for $370,000 and sold it in October, 2018.$40,000 in straight-line depreciation has been taken on the house.A run-up in housing prices allowed him to sell the house for $575,000.In the year of sale, Dan received $175,000 when the buyer sold some investments, an additional $200,000 when the buyer closed a loan from the bank, and took a $200,000 note from the buyer, payable on the anniversary of the sale date in 10 installments of $20,000 each plus interest on the unpaid balance.Using the installment method, calculate his taxable gain in the year of sale.

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The Answer of Dan acquired rental property in June 2008 for $370,000 and sold it in October, 2018.$40,000 in straight-line depreciation has been taken on the house.A run-up in housing prices allowed him to sell the house for $575,000.In the year of sale, Dan received $175,000 when the buyer sold some investments, an additional $200,000 when the buyer closed a loan from the bank, and took a $200,000 note from the buyer, payable on the anniversary of the sale date in 10 installments of $20,000 each plus interest on the unpaid balance.Using the installment method, calculate his taxable gain in the year of sale.

Dan Acquired Rental Property in June 2008 for $370,000 and Sold