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>>"But you owned the asset the whole time."

> And paid income tax on the annual rent.

This stems from the original situation you posted...
Say I bought a rental house for $100,000 in 1990.

I pay taxes on the net rental income each year.

In 2019, because I am older, DIY projects are harder to do, and Covid, I sell the house for $300,000 net of sales costs.

Do I have real capital gains of $200,000 and what amount should I be paying in capital gains taxes?

I am asking from a place of true ignorance. But would your capital gains be from $200,000? Doesn't that imply that you have not depreciated the cost of the asset at all during the 30 years?

Asking because I really don't know.
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