Are you saying that you had suspended losses from rental on this property and this amount did not reduce your gain? Or is the carry over passive losses from other sources or from another rental property?
Generally what happens is that -- your basis in the property is first reduced by accumulated depreciation -- this is your adjusted basis at he time of disposal.
The sales proceeds are reduced by sales expenses ( sales commission, transfer taxes, sales prep expenses-- like your $20,000 ) and then reduced by suspended losses on the property ). This adjusted sales proceeds is used to compute gain/loss
Your gain/loss therefore is Adjusted Sales Proceeds LESS Adjusted Basis.
Is this not what you are seeing. ?
