a taxpayer bought a rental real estate property in year 1 for $200,000. for years 1 and 2 the following was reported: year property year income (loss) agi 1 ($20,000 ) $ 90,000 2 (35,000 ) 175,000 in year 3, the property was sold for $275,000. the taxpayer materially participated in the rental activity in all three years but is not considered a real estate professional for tax purposes. assume there is no income or loss in year 3 from the properties. what amount of gain is reported, in year 3 on the taxpayer's return, as a result of the sale?
