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Level 1
November 19, 2023
Question

I have an investment property, will a HELOC on the property reduce my amount of capital gains to pay once the home is sold. The home is paid off. Thank you for your help.

  • November 19, 2023
  • 2 replies
  • 5 views
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    2 replies

    fanfare
    Level 15
    November 19, 2023

    No.

    Profit is proceeds - cost basis.

    mortgages don't count.

    @vzombek 

    Level 15
    November 19, 2023

    @vzombek the capital gains is based on the ASSET (the home); a mortgage is a liability and is not part of the equation,