Thanks DoninGA.
Let me use an example, the property was purchased at $500K on 2020/1/1.
In 2020, the rental income is $10K, the holding cost is $12K, depreciation is $6K. No tax on rental.
In 2021, the rental income is $10K, the holding cost is $10K, depreciation is $4K. No tax on rental.
When selling it at $500K on 2022/1/1, does it count the sale gain as $500K - ($500K - $6K - $4K) = $10K?
The owner needs to pay sale income tax on $10K. Is it right?
