The problem was I did not add land sale price and TT was comparing to it's original land price and marking it as a loss. I simply looked at county website to get land price estimate and reduced asset sale price by the same. Of course depreciation recapture was taken into account. This solved the problem.
The confusing part was when you originally add the purchase price, TT want you to add full amount you paid. There is separate column for land price estimate. However, when you sell the property, TT want you to subtract land price estimate from asset sale price. This is not clearly mentioned.
