DWoods
Level 1
03-03-2021
07:58 PM
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My brain isn't working well--
if you bought a rental property for $150,000, and a few years later sell it for $300,000
(not adding/subtracting costs and basis here), you have a profit of $150,000.
However, you still had a loan of $90,000. Do you subtract the amount of the loan from the profit to get to the net profit you pay taxes on?
Solved! Go to Solution.
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sjrcpa
Level 15
03-03-2021
08:08 PM
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No.
Ex-AllStar
abctax55
Level 15
03-03-2021
08:15 PM
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Did you report that original loan as income when you got it? Most likely not, so paying it back isn't a *deduction*.
"*******Tax software is no substitute for a professional tax preparer*******
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DWoods
Level 1
03-03-2021
08:46 PM
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Thanks. Got it figured out and realized the answer was right in front of us. My brain hurts!
