I retired along with my wife and now have pensions, SS, and investment earnings for living. We moved into our rental property two years ago and consider it our primary residence. We have $250k in accumulated losses and depreciation of $104k. I understand that I must sell the property to realize the accumulated losses. Not sure how that works and what is net effect on taxes by claiming the loss. Assume $200k annual earnings and effective tax rate of 20 percent. Purchased property for $320k, expect sale price of $400k.