Posted by Jay(TN) on August 04, 2003 at 08:07:30:
The mortgage amount is not important. What you need to know is how much he paid for the property and what depreciation he has taken. This will allow you to calculate an adjusted basis. The difference in the purchase price and the adjusted basis is your taxable gain, with a portion being subjected to depreciation recapture and the other long term capital gains. He is responsible for paying the taxes.