1 The Bahamas economy is dependent on the tourism and offshore banking industries. 2  The economy in the Bahamas is steady and stable.  Constructions for hotels and resorts is booming, due to the large influx of tourists.
Loss on Sale. When you earn a profit on a real estate sale, you have capital gains. When you sell at a loss, you have a capital loss and you can deduct it. If you gains from other sales, you subtract the loss from the gain. If you have any loss left after that, you can deduct up to $3,000 from your other income, then carry the rest forward to next year.
In the event a property is sold at a loss the depreciation recapture rules do not apply. Assume in the above example the property was sold for $1.1 million. The property owner would simply report a loss of $400,000. No deprecation recapture calculations would be required. The 25% depreciation recapture tax rate only applies to the portion of the gain attributable to real property.