Selling rental property below market value I have owned a rental property for three years and have reported a net loss each year on my taxes mainly from depreciating my rental property as my rental income and expenses have netted mainly to zero.
My adjusted cost basis after depreciation is deducted and improvements are included is now 250k.
My question is if I sell my house for 150k and the FMV is 200k, do I get to deduct 100k to offset my huge capital gains this year or is the IRS going to say my loss is only 50k based on FMV of my home?
Thanks |