We purchased a home that was our primary residence for about seven years. We then purchased a newer home, and began renting the other home after extensive renovations. The accountant placed it into service Oct. '13 with a cost basis of original cost plus renovations. We recently sold the home to the renter and we hold a personal mortgage that earns interest. The home was place into service with a value of 203K less the depreciation taken over the past 4 years of 29,013. We sold the home for 195K, but had also had to add a new AC unit with a value of 6.5K. How do we equate the seller finance loan installment with these values. The sale would have been at a small gain.
