The following scenario exists:A couple comes into your office having a transacti

The following scenario exists:A couple comes into your office having a transaction ahead of them in the next two weeks for which they seek your advice.The transaction is as follows:They have held a rental property for the past ten years. This property has been depreciated using the proper 27.5 length of time. They now seek to sell the rental property since they no longer wish to maintain it. They will sell the house with all the furniture in it all of which is considered personal property and all of which has been also depreciate over a five year period.1. They ask what code sections are likely to apply. They also ask how each code sectionn basically works.2. They ask them how much they purchased the property for what if any improvements were made and what the selling price is likely to be and them ask to see their prior year tax returns so you can determine how much depreciation was taken.3. Having benn basic estimate answers you spend the better part of the next hour discussing what the likely tax result is going to be and advising them of any tax dangers that lurk in the transaction and how to possibly avoid them