Hi Miss Cathy,
Since your property is fully depreciated, the entire sales price (less selling expenses) would be your taxable gain. You would be allowed to deduct selling expenses such as sales commissions, title insurance, transfer taxes, etc. In addition, if you make improvements to the property before selling it, these would be added to your basis and would reduce the amount of taxable gain.
If you are interested in owning other investment real estate, you may want to look at our article about performing a Like-Kind Exchange. This could enable you to defer the capital gains tax. You could exchange for other types of real estate - it does not have to be a house for a house. You could exchange into land, apartments, or an office building. Replacement property could be any type of real estate within the US that is held for investment or for use in a trade or business.
I hope this information helps!
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