[l2ridehd]

You really need to look at how you have handled this rental property each year on your taxes. Almost all renal properties show as a depreciating asset each year of ownership. As an example lets assume the property is worth 350K and has been rented for 10 years. On your taxes each year you depreciate the value of the building each year. (not the land). So if the land is worth 50K and the building 300K and you used straight line depreciation over 30 years, than 10K each year for 10 years would now show the building value as 200K. So if you sold it for a "20K loss from purchase price", you actually have a capital gain of 80K. 300K building, now worth 200K, land 50K still worth 50K, selling for 320K vs 350K purchase, gives a capital gain of 80K.

So very important to understand how you have handled this tax wise for the past 10 years.