Selling Investment Property in an Estate

[debothomp10]

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. 

[tagteam]

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@debothomp10 wrote:

How do I include the payoff to reduce the capital gain? 

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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).

[debothomp10]

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?

[tagteam]

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. 

[debothomp10]

He is the decedent.  Thank you for your help!