Capital gains question - selling rental property

[Mark Glade]

Hello all, Quick question for you "experts" here. I have a rental property in GA that I'm looking to sell. 

I've owned it since 2004, when i paid $200k for a brand new home. I have rented it out since 2016. My mortgage balance is $70k and I have an offer from current tenants to sell at $228k. My profit will be roughly $158k.

Do I pay capital gains on this rental if my net profit is less than what i purchased the home for ?

Thanks , Mark

[Mark Glade]

Eric, sorry for the confusion. I was trying to describe what will be be a profit for me, after the loan is paid off. 

It sounds like I will only pay the capital gains on the $28k above my original purchase price of $200k.

And i did take depreciation on taxes starting in 2018. So not sure if that makes me pay more or less after the sale goes through.