Investment property that is purchased with your own money (regardless of how you got it) and sold for a profit in the same year is considered a short term investment and is taxed at your regular income tax rate. So the tax on that extra $20,000 may be steep.
Investment expenses are not a deduction anymore, however expenses associated with the actual purchase of the property are included as part of the basis (amount paid for the property) and expenses associated with the sale of the property will be included in 'expenses of sale.'
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