@Linda Cunliffe Did you live the property during that time? If so you can exclude $250k (single) or $500k (married) in capital gains. Meaning it should have no influence on your taxes.
Better questions; Why sell it for so cheap? If it's generosity thing that's great but I'd consider the relatives financial position. Can they qualify for a $220k house on there own? Do you have a low interest rate mortgage on the property? What about seller financing closer to market value? Buying a house can be a blessing or a curse. I would consider that before doing deals with family.
Hi @Linda Cunliffe, If you sell to a relative below market, the IRS treats the discount as a gift, not a deductible loss. You generally can’t claim the $80k loss, and you may need to file a gift-tax form (though you likely owe no tax).