Question

Sales expenses - Sale of Second Home/Mortgage

Forum|Forum|2 years ago
April 1, 2024
1 reply
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We sold a second home in Texas (not a rental property) and had to payoff the mortgage. Can I consider the mortgage payoff as part of the sales expenses, not listed on my 1099-S?

V

Vanessa A

No. Your mortgage payoff is not part of the sales expense. Your mortgage balance would already be part of the cost basis since the mortgage was used to buy the house and the cost of the house is part of the cost basis.

Tax Law for Selling Real Estate

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