Example:

Eric bought land five years ago with $6,000 cash and a $30,000 loan, and paid additional expenses of $1,500 legal fees and $500 real estate commission related to the purchase. On July 1st, he sells the land to Dane. Dane pays Eric $12,000 and assumes Erics debt of $30,000. Eric pays $1,000 of legal fees and $2,500 real estate commissions on the sale. What is Erics gain or loss on the sale?