I sold my home last year but I owed my mortgage co. so much that my profit is very small. Isn't there a place to show how much I paid to my mortgage company?

[playa1818-tax]

It shows I made a huge profit on my house sale but the actual amount I received was very small.

[TomYoung · Accepted solution]

Another way of looking at this is: You didn't claim any "income" on your income tax return when you borrowed the money so you certainly can't claim any "deduction" when you pay back the money you owe.

Tom Young

[LisaS]

The mortgage owed on the house is not part of the calculation for your profit on the home.  For example if you bought the home for $250,000 and sold it for $300,000 you have a $50,000 profit ($300,000 - $250,000) on the home regardless of the amount owed to the mortgage company.

If you bought the home for $250,000 and the value rose so you took out additional money (let's say the value rose to $400,000 and you added $50,000 to your existing $250,000 mortgage) and then you sold when the value was below the $400,000 (let's say that you again sell for $300,000) your gain on the sale is still the $50,000 from above but you don't get that money since you "received" it when you pulled the money out earlier.