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ylbmitchell
New Member

If I borrow money to help purchase investment property, then later sell the property and paid the money back, would I report the full amount of the sale? Or the net sale?

I borrowed money from a family member to help with the down payment.  When I sold the property, I gave the full amount back, no additional interest.  I am trying to figure out if I can deduct the amount I paid back to reduce my capital gain since those funds were borrowed.

1 Reply
Ashby
New Member

If I borrow money to help purchase investment property, then later sell the property and paid the money back, would I report the full amount of the sale? Or the net sale?

No, your purchase price is your basis in the property and paying back funds is not a deduction. 

So, if you paid $100k and borrowed $50k, your basis is still $100k. 

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