Franco converted a building from personal to business use in May $2020$ when the fair market value was $$50,000.$ He purchased the building in July $2017$ for $$80,000.$ On December $15$ of this year, Franco sells the building for $$40,000.$ On the date of sale, the accumulated depreciation on the building is $$5,065.$ What is Franco's recognized gain or loss on the sale?