Investors & landlords

"to the extent of any gain that would have been treated as ordinary income because of depreciation"

I interpret that to mean he can deduct the FMV minus the depreciation.

So if the Unadjusted Basis was $100,000, he took $10,000 of depreciation, and the FMV is $150,000, I think he can deduct $140,000.

Do you agree?