Five years ago, you purchased a small apartment complex for $1,000,000. You borrowed $700,000 at 12% for 25 years with annual payments. The original depreciable basis was $750,000 and you have used 27 12 year straight line depreciation over the 5 year holding period. Assume no capital expenditures have been made since acquisition. If you sell the property today for $1,270,000 in a fully taxable sale: