Mortgage payoff on home sale

[22clwilliams]

We sold our primary residence in 2021.  Our mortgage was paid off with the sale proceeds.  Does the mortgage factor into the cost basis of the home?  

[Bsch4477]

No. Capital improvements factor into that calculation as well as the cost of the home when you bought it. 

[VolvoGirl]

Well the Mortgage was part of your original cost or what you bought it for.   If you bought it for 100,000  and put down 20,000 and got a mortgage for 80,000 - your cost is still the full 100,000 purchase price.   

[22clwilliams]

Thank you.