There was a mortgage on the property that I paid while fixing the property up to sell. Does the principal I paid add to the basis? The remainder of the mortgage was paid off at closing, so it is deducted from the sales price to calculate "cash to seller". Would the principal payments I made have the same effect?
Also, I did not deduct mortgage interest and property taxes paid on the property for the years prior to the sale. Can I file an amended return to claim those costs?
