I sold my home in 2019. Would the Sales Expenses include the payoff of my mortgage?

[VictoriaD75]

No. You cannot include the payoff of a mortgage as a sales expense. 

Sales expenses include most items that would not be separately deductible on your taxes or loan fees.

Sales expenses include:

 - commissions

 - appraisal fees

 - broker's fees

 - legal fees

 - advertising fees

 - home inspection reports

 - title insurance

 - transfer taxes or fees

 - geological surveys

 - loan charges (points) or other fees paid on the buyer's behalf

Sales expenses do not include:

 - mortgage payoffs or interest

 - home equity loan payoffs

 - rent-back costs

 - payoff to creditors

 - property taxes

 - home owner association fees

[fawnallen118]

It is now 2022 taxes and I cannot find a decent answer to this question. Or anywhere does it say WHERE to record the Mortgage Payoff on the sale of a rental property.

So it begs the question, Why the hell cannot you deduct that mortgage payoff from the expenses from the sale?  The property is a rental, which is a business, and in order to sell the property, the business expense portion of the sale is the payoff of the mortgage. Thus it should be reported under expenses to sell. Correct?

[Cynthiad66]

It appears that you are receiving the correct answer but might not be clear.   Your mortgage is already included when it is a part of the Cost basis of the property.  You use cost to offset sales price in determining gain on the sale.

For instance,  when you bought the house it cost $500,000 and you mortgaged $450,000.  Since you are renting the property you are depreciating $500,000 minus land.  Now when you sell the property you are claiming the cost of the property minus depreciating etc. in determining your cost basis from the sales price to determine your gain/loss.

That example has missed a lot of steps but I hope you get the idea.  I hope this helps.

Check IRS Here.

@fawnallen118