topic I sold my home. The buyer paid off the mortgage loan in escrow so I never actually received any money. Do I still enter this as debt assumed by buyer and money paid me? in Deductions & credits

I sold my home. The buyer paid off the mortgage loan in escrow so I never actually received any money. Do I still enter this as debt assumed by buyer and money paid me?

liz0992 — Mon, 23 Feb 2026 12:39:38 GMT

Re: I sold my home. The buyer paid off the mortgage loan in escrow so I never actually received any money. Do I still enter this as debt assumed by buyer and money paid me?

Carl — Mon, 13 Feb 2023 16:57:12 GMT

The loan payoff amount is not deductible. it's reportable income for you. Only the interest (as reported on the 1098) is deductible as a SCH A itemized expense.

Re: I sold my home. The buyer paid off the mortgage loan in escrow so I never actually received a...

MinhT1 — Mon, 13 Feb 2023 17:05:06 GMT

The debt assumed by the buyer is part of your selling price and has to be reported as such. It is just like the seller paid you the amount and you repay the loan. The loan repayment is not deductible.