Tax implications when selling a rental property

[Ajay Pottirayil]

Hi All ! 

I am new to this. Just created an account.  I have a question. Hope a few members can shed some light.

I purchased a home in 2002 for $250,000.  I lived there until 2015.  I am renting it now  (since market was down and couldn't sell it).    The tenants wants it for 3 years until end of 2018.   At the end of 3 yrs I expect it to sell only for $220,000.  I am still paying mortgage.  How does the tax work? meaning the capital gains/loss tax?  what all should I consider when I plan to sell ??  

Any feedback appreciated.  

Thanks.

-AJ