Sidney owns a residential rental property with an adjusted basis of $200,000 at the beginning of the current year. The county treasurer sends Sidney a tax bill payable by December 31. The bill is for real estate property taxes of $1,200 for the current calendar year and for a $6,000 special assessment for a new sewer line. On November 1, Sidney sells the property to Donald for $225,000. As part of the sale contract, Sidney will pay the real estate taxes of $1,200 at closing and Donald agrees to pay the special assessment of $6,000 on the due date. What is Sidney's gain on the sale?

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The Answer of Sidney owns a residential rental property with an adjusted basis of $200,000 at the beginning of the current year. The county treasurer sends Sidney a tax bill payable by December 31. The bill is for real estate property taxes of $1,200 for the current calendar year and for a $6,000 special assessment for a new sewer line. On November 1, Sidney sells the property to Donald for $225,000. As part of the sale contract, Sidney will pay the real estate taxes of $1,200 at closing and Donald agrees to pay the special assessment of $6,000 on the due date. What is Sidney's gain on the sale?

Sidney Owns a Residential Rental Property with an Adjusted Basis