An income property is purchased for $100,000 with $80,000 al…

An income property is purchased for $100,000 with $80,000 allocated to the building and $20,000 to the land. The depreciation rate is 10% per year, straight line. The property is sold for $100,000 net at the end of the tenth year. How much did the seller declare as a capital gain in the year of the sale?

A California couple, age 65 years each, retired to Arizona….

A California couple, age 65 years each, retired to Arizona. They sold their California house for $500,000, realizing a $125,000 capital gain. They purchased a home in Arizona in the same year for $375,000. How much did they have to declare as taxable income from this transaction?