Sale of second home. Is net proceeds what we made on the sale or what we sold it for? It seems what we sold it for would be gross proceeds.

[tdaubney]

We live in NH and sold out second home in Maine. Let's say we bought it for 80,000 in 2014 and sold if for 130,000 in 2017.

For net proceeds do I enter 130,000 or what we made on it after paying off the loan etc. 

For original cost is it the 80,000?  Net proceeds seems like it should be what we made but that shows a loss if I use that with the 80,000.  

[PatriciaV]

Yes, the number to enter for "Net Proceeds" is the amount you received for the sale. This is generally gross proceeds less closing costs.

The amount of the mortgage pay-off is not included in the tax calculation of gain or loss on the sale for tax purposes.