Alberta owns 5 acres of land she purchased several years ago for $6,500. A new housing development is being built on the north side of her property. The owner of the development needs part of Alberta's land to run utility and sewer lines to the new development. The owner offers Alberta $13,000 for half of her land, but Alberta decides to wait to see if the land will appreciate further after the development is built. She agrees to grant the developers an easement to run the utility and sewer lines through her property for $3,000. Complete the letter to Alberta explaining the tax consequences of granting the easement. Dear Alberta, I am writing to clarify your question regarding the tax consequences of granting the easement on your land. An easement does not constitute a realization of income because the property has not changed its form or substance. Therefore, the $ is a nontaxable recovery of capital investment that reduces Alberta's basis in the land to $ Feedback