If it is truly sold at a loss, NO, there is no tax.
However, some people misunderstand what "loss" means for tax purposes, and don't realize that depreciation lowers your "basis".
For example, let's say you bought the property for $100,000 and were able to take $10,000 of depreciation. The depreciation lowers your "basis" to $90,000. So if you sold it for $95,000, you actually have a GAIN, despite that it sold for less than you originally paid for it.
