I sold a rental property. Is the mortgage payoff amount to be deducted from the sales price? (Otherwise, it shows that I made far more profit than I actually did.)

posted

Connect with an expert

1 Best answer

Accepted Solutions

I sold a rental property. Is the mortgage payoff amount to be deducted from the sales price? (Otherwise, it shows that I made far more profit than I actually did.)

Is the mortgage payoff amount to be deducted from the sales price?

No, the mortgage payoff is not a factor.

The balance of your loan is not deducted from the sales price in the process of determining your gain.

View solution in original post

1 Reply

I sold a rental property. Is the mortgage payoff amount to be deducted from the sales price? (Otherwise, it shows that I made far more profit than I actually did.)

Is the mortgage payoff amount to be deducted from the sales price?

No, the mortgage payoff is not a factor.

The balance of your loan is not deducted from the sales price in the process of determining your gain.

Still have questions?