The reason is "Depreciation Recapture"
When you sell a rental, the depreciation you took and then recovered is reported as ordinary income.
After that, profit is capital gain.
So if you purchase property for 220,000 and depreciate 150,000 it has an "adjusted basis" of 70,000.
If you sell it for 300,000 you would have 150,000 depreciation recapture (ordinary income) and 80,000 Capital Gain.
It doesn't matter if you did not take deprecation, the IRS charges the depreciation recapture if you properly claim depreciation or not.
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