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No, you would only pay tax on the gain. If you sold for less than your cost (purchase plus improvements) you would not pay tax.
You still need to report the sale, to show that you did have a loss.
If you never used the property for personal purposes, you can apply the loss to other gains then (if you have loss left over) you can apply $3000 of loss to other income (like wages).
If you still have loss left over you can carry that forward till used up.
You will report on form 8949 and Schedule D.
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