Do I need to pay tax if I sell my rental property in loss

[Mohammed A.]

Thanks in advance for your response. Much appreciated. Happy holidays.

Another question, does the depreciation is calculated from the time when house became a rental property or I need to include depreciation during the years it was my primary resident also?

Based on my internet research, profit is calculated on the sale price minus adjusted basis, not the amount you originally paid for the property. Adjusted basis is the original purchase price, minus the cost of any improvements to the property, plus the accrued depreciation on the property. If this is true, I believe I don’t need to pay any tax when I sell the house, but just wanted to make sure.

My question is, do I have to pay any tax of the amount I will have after I pay of the remaining loan amount when I sell the house.

Ihave a house I purchased during the boom in 2006. We lived there until end of 2015. I rented the property at the beginning of 2016. I want to sell the house after the lease is over next year. House is not under water i.e. loan amount is less than the market value. However, market value of the house is substantially less than price I paid.