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Investors & landlords
Your question is somewhat unclear, but if you are wondering whether you can deduct the (payoff) balance of a loan on your house from the sales price to offset your capital gain, that is not possible (i.e., it is not the way capital gains are calculated).
In order to arrive at your total capital gain on the sale, you would deduct your cost basis (typically what you paid for the house plus the cost of any improvements made) from the sales price (less selling costs); you cannot deduct the payoff of the loan.
‎June 13, 2023
11:27 AM