You paid $400,000 for a two-bedroom condo in Las Vegas on the Strip and over the past 10 years you have used it for rental property and claimed $65,000 for depreciation. You made $40,000 in Capital Improvements in the condo in Las Vegas. You owe approximately $120,000 on the condo and the buyer ssumed the mortgage for you. The cost of the sale was $50,000 which was deducted at closing. The erson who bought the condo paid you $200,000 in cash and the Cabin in Lake Tahoe is worth $300,000 ir market value. He has a mortgage on this property totaling $50,000 which you have assumed.
