If you paid $75,000 and paid $10,000 in upgrades, then sold for $85,000, $11,000 may be slightly high, but probably not that high depending on your other income. The loss from renters is not deductible.
However, you have no gain on the sale. You would need to recapture depreciation which would be about $2,727 per year for 17 years which would be $46,363 that you would have recaptured and are being taxed at your ordinary income tax rate.
You may want to double check a few things, such as did you enter all of your selling expenses and did you enter your cost basis? Is the sale showing as a loss? If so, then your taxes due are likely coming from the depreciation recapture.
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