for the years you were renting it, you should have been taking depreciation. you now have a mess on your hands. because the depreciation you were suppose to take but didn't is subject to recapture upon sale of the property.
since rent free to a family member, this would probably be regarded as personal use and the loss would not be deductible. however you could have a gain - sales price less cost of sale less: cost of home reduced by the depreciation you should have taken
seek professional help, since TT can't handle your situation.
