I have an investment property that was sold in an Estate which had a private mortgage payoff. I have included the sales expenses but it says not to put mortgage payoffs in this category. How do I include the payoff to reduce the capital gain? Any help would be appreciated.
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@debothomp10 wrote:
How do I include the payoff to reduce the capital gain?
The mortgage payoff (the balance of the loan due) does not factor into your gain/loss calculation.
You simply subtract your adjusted basis from your sales price (less selling expenses).
The payoff was for a divorce settlement agreement. If he ever sold the property the ex-wife was entitled to a percentage that equaled $82,000. Can that be a deduction?
Who is "he"? What were the terms.
Regardless, if the proceeds were split with another party, then only the proceeds received would be factored into the gain/loss calculation.
He is the decedent. Thank you for your help!
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