I have some questions regarding the tax laws in selling a rental property to family. I have a property that my sister and her family have been renting from me for several years. We lived in this house as our primary residence for several months, prior to deciding it wasn’t a good fit and we needed something larger. They would like to purchase the property, we are not using a realtor (which helps $ a lot). They have already been approved by a lender and sent me an offer, which is market value of the house (23k more then we paid for the house in 2017). However, they are having the lender build in their closing costs (12k) and are also asking for “gift equity” of 15k so they can put it toward their down payment. After deducting those, we are actually receiving 3k less than what we paid for the house, which I’m ok with. I am wondering if there are any tax implications from the gift equity in 2022? I have heard there are tax implications to selling a rental property to a family member, such as not being able to claim depreciation/PAL? Since the rental house is selling for 23k more then we paid, I assume we would have to pay capital gains on this but would the closing or gift equity be deducted from this amount first (which would make it $0 profit). We are worried our 2022 taxes will get hit from this transaction. Thank you.