Recommend that you seek finality on the status of the property. If the county buys for $22,000 you will have a approximately $13,000 loss which would be a long term capital loss and the deduction limited to $3,000 for the year, if that was your only sale of capital property. The balance of the loss is used in future years at the rate of $3,000 per year.
If you sell it yourself and the loss is higher, again, you are limited to a loss of $3,000 per year with the balance carried over. You can use the losses as an offset against any gains you may have on other transactions.
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