I need help with entering sales expenses on a rental house that was sold last year. Do I include the loan balance payoff as part of the sales expenses?

[mtniehuss]

The net take home after sale of the home was only $230.06.

Sale price $163,000

Loan payoff $149,207.81

Fees paid b us including commissions, broker fees, taxes, etc. $13,562.13.

[TaxGuyBill]

No, the loan payoff is not a selling expense, and has nothing to do with your gain or loss.

[jenny bird]

Hi, friend. I am in a similar boat this year. I got a 1099S for 38,000 but I had to pay 37K and change to pay off the mortgage. I sold at a 17K loss. But I can't find anywhere in TT to denote that so the IRS thinks I made 38K. If you found a solution, I'd be grateful to have it. Thanks, Jen

[TomD8]

@jenny bird  -- When you enter the sale into TurboTax, you should come to a page that asks you for the Date Acquired and the Original Cost.  

Your gain (or loss) is your Original Cost less your Net Sale Proceeds.  The mortgage balance or payoff is irrelevant to the calculation.