Depreciation recapture and passive losses when selling property at a loss?
I have a rental property with the following situation:
-$155K of passive carryover losses
-$100K of depreciation taken
-$700K adjusted cost basis (purchase price less depreciation)
- $775K net sale (selling price less realtor fees)
So my question is:
1. Under this situation I owe no capital gains but I owe 25% recapture depreciation x $75K for federal taxes?
2. What happens to the $25K of the $100K total depreciation that wasn't recaptured?
3. Can I still apply the full $155K of passive carryover losses to my ordinary income or will this be reduced by the $25K deprecation that wasn't recaptured?