Is this deductable or partially deductable?

[lear442]

Good afternoon,

A follow-up to a previous question:

I sold a piece of property and from that I received $75,000.  This was NOT my home, it was pure acreage (no domicile on the property).  I had a loan with a remaining principal of $50,000 on that piece of property.  At the time of the closing, I used the proceeds of the sale to pay that loan (mortgage) off. (again, this was NOT my primary mortgage on my home) That left me a 0 balance and the loan was closed and I had $25,000 in my hand.

Is any of that $50,000 portion deductible?

(I am using TurboTax Deluxe with all updates installed.  The product was purchased at Staples and came on a CD/DVD)

Many thanks for your help and have a great day

All the best,

Howard

[Coleen3 · Accepted solution]

Unfortunately, no. Mortgage principal is not deductable. Your gain is the difference between the purchase price plus expenses of sale, subtracted from the sales price.