I purchased some residential / commerical property (part of the property is a house I rent out and other part is a building that I rent to a company) in 2002 for about $162,000. At the end of 2007 my total depr. on the property was $28,210. If I sell the property in 2008 for about $400,000, will I have to pay capital gains and if so at what percentage? And why do I have to pay capital gains if it was investment property.

Thank you soo much for your help.

HEATHER RINGLAND