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 · ‎February 13, 2023

MinhT1 · ‎February 13, 2023

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.

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Carl · ‎February 13, 2023

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.

MinhT1 · ‎February 13, 2023

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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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?