Had a rental property that was foreclosed upon. Debt was nonrecourse. Trying to determine the amount of the capital loss. Balance of loan was $213,480. Purchased property for 267K, had an a/c repair for 3K, and took depreciation in amount of 42K. So I believe the adjusted basis would be about 234K (purchase price plus improvements minus depreciation). I understand that for nonrecourse debt, the amount realized is the higher of the balance of the loan or FMV. Balance is higher. So I am calculating the amount realized as $213,480 - 234K, which equals about a loss of about 20K. Please let me know if this is correct. Thanks for your help.