It may take some math to see if a price reduction would be enough to matter. For example, let's I sell it at the current asking price and make a $100,000 taxable gain. If my tax bracket is 25% that means after taxes I only get to put $75,000 in my pocket if I do not sell it in time.
However, if I reduce the price to $85,000 and I "DO" sell it in time, then I get to put $80,000 in my pocket.
Were this my scenario, I'd drop the price.
Another thing you must understand too. All that depreciation you took while it was a rental is recaptured and taxed in the year you sell it, NO MATTER WHAT. What I'm saying is, you WILL pay tax on your recaptured depreciation, and there is NO WAY around that. If you did not take depreciation, then you still loose because you will pay taxes on the depreciation you *should* have taken. Just be aware of this stuff concerning your depreciation.
