Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for $50,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $25,000. Steve's original cost for the house was $170,000 on January 1, 2011 and accumulated depreciation was $27,000 on the date of sale. He collects only the $100,000 down payment in the year of sale. If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain.
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Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for $50,0...
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