Selling house to relative under contract

[Michele Foreman]

We bought a foreclosure three years ago, with the intention of renting it out and being first time landlords. It took three years to complete as we did the work ourselves. Our first tenant couldn't pay the first months rent so we decided to go a different direction and sell it to our son. Here's my question. How do we minimize our tax liability when we sell it? Would it be better to sell it to my son under contract or for him to get a loan from the bank? He has good credit and is able to get a loan.  I have read that if we sell it under contract we can't deduct depreciation, but what about the repairs we have done over the years? Also, if we give him a deal on the property will we get in trouble with the IRS?  I have called my accountant several times about this property, and asked him many questions. I'm afraid he is getting annoyed with all my questions. So if anyone here could help me with this I would be so appreciative! Thankyou!