Selling Rental Property At A Loss

[Libby]

s About Taxes)/Selling Rental Property at a loss Advertisement Expert: John Stancil, CPA - 4/4/2007 I purchased a rental property in Nov 2003 for $215,000. I'll most likely end up selling it for $209,000 as the market has taken a downturn. I've taken the depreciation every year and am wondering if there will be a tax consequence even though I am selling at a slight loss?  

[Ramsey]

Mike,

Thanks for your question.

Actually you will probably be showing a gain.  You must reduce your basis in the house by the depreciation allowed or allowable.

Any gain up to the amount of depreciation is taxed at ordinary income rates.

Hope this helps.

John Stancil, CPA