@Jino wrote:
I just thought of something I hadn’t before. Is it still gains if my profits from the sale are less than the money I put down. Between down and fees I put out around 54k. If I sell I stand to walk away with 45k.
Your cost basis is not just your down payment and closing costs; your basis is what you actually paid for the house plus improvements during your period of ownership.
Simplified example: You put $52k down, had closing costs of $2k for a total "down and fees" of $54k but you also took out a mortgage for $100k. Your basis is $154k. If you then sell for $199k (after selling expenses), you have a gain of $45k.
