netting $281 and what the sales price is are two different numbers. you could sell for $700K with a $400K mortgage and $19K settlement costs and expenses. thus you net $281K but for the selling price you use $700k so it's not what you netted but the gross sales price (what should be on 1099-s) that is used to figure gain/ loss(non-deductible). then there are the closing costs/settlement charges to seller (excludes things like real estate taxes/escrow, HOA fees, mortgage, interest due,. so gain is selling price less settlement costs less your basis.
examples of settlement costs that a seller might pay (be charged on closing statement sometimes referred to as HUD-!
appraisal fee
flood evaluation fee
pest inspection fee
survey fee
various title fees
recording fees
transfer taxes
inspection fee
brokers commissions
legal fees
home warranty
and there could be others
also watch for settlement costs paid outside of closing that are your expense.
