Problem 4: You have just sold a condo that you own in Las Vegas Nevada in return for some cash and property on Lake Tahoe which includes a cabin. What is the Amount Realized the Sale, your Adjusted Basis; and, your Gain or Loss Realized and Recognized. You paid $400,000 for a two-bedroom condo in Las Vegas on the Strip and over the past 10 years you have used it for rental property and claimed $65,000 for depreciation. You made $40,000 in Capital Improvements in the condo in Las Vegas. You owe approximately $120,000 on the condo and the buyer assumed the mortgage for you. The cost of the sale was $50,000 which was deducted at closing. The person who bought the condo paid you $200,000 in cash and the Cabin in Lake Tahoe is worth $300,000 fair market value. He has a mortgage on this property totaling $50,000 which you have assumed. Show Your Work! Amount Realized: Adjusted Basis: Gain/Loss Realized: Gain / Loss Recognized