What is Kareem realized gain or loss

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Problem - Kareem bought a rental house in March 2014 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2016, he had a tennis court built in the backyard at a cost of $7,500. Kareem has deducted $30,900 for depreciation on the house and $1,300 for depreciation on the court. In January 2019, he sells the house and tennis court for $330,000 cash.

Required -

a. What is Kareem's realized gain or loss?

b. If an original mortgage of $80,000 is still outstanding and the buyer assumes the mortgage in addition to the cash payment, what is Kareem's realized gain or loss?

c. If the buyer takes the property subject to the $80,000 mortgage rather than assuming it, what is Kareem's realized gain or loss?

Reference no: EM132670469

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