IRS documentation shows that a particular building has depreciated at a constant rate of 3% every year. Suppose that an investor buys the property in September for $100,000 and from September to the end of the first year, the property depreciates at a prorated 1%. Say that for the next eight years, the property depreciates at a constant rate of 3%, so in April of the tenth year (after taxes have been paid), the owner sells the property for $150,000. If during that last year the prorated depreciation was 1%, how much taxable income on capital gains will the owner receive from the property following the sale?

Real estate math commonly covers commissions, property taxes, area/acreage, and loan calculations, frequently using a T-chart method (Part/Total Rate).