A taxpayer purchases a building with $200,000 cashing $800,000 non recourse loan. The taxpayer then takes $600,000 of the depreciation deductions and sells the building for $600,000 cash and the buyer will take the property subject to the liability(which has remained at $800,000). 

What is the Gain/Loss?Why?

 

What is the Character?

Answer rating: 100% (QA)

SOLUTION To calculate the gain or loss on the sale of the building we need to determine the adjusted ... View the full answer