Asset Sales

[gsindcal]

I sold my investment home in 2021. What all can I show as expenses from my closing statement? Can I include the mortgage payoff amount as expense? For e.g.

Total sale price = $100,000

Mortgage payoff = $50,000

Closing Cost = $5,000

Real Estate Commission = $3,000

Can I show total expense as $58,000 or will it be $8,000?

[MinhT1]

The mortgage payoff is not a selling expense. It is the payoff of your loan.

In your case, total selling expense is $8,000.

[gsindcal]

Thanks. 

In this case, will the Sale price be excluding the mortgage payment then? 

My capital gain is only $50,000 here (100k - 50k). Should I be showing the capital gain as the Sale price? I dont want the entire $100K to be shown as capital gain, which is incorrect. How do I show the payoff amount to correctly represent my capital gain? Dont want Turbotax to tax me on entire $100K. 

[Vanessa A]

Your mortgage pay off is irrelevant.  You would use the price you paid for the house as a deduction.

Total sale price = $100,000

Purchase price = $60,000  (random number)

Closing Cost = $5,000

Real Estate Commission = $3,000

 Total expense would be $68,000 in this example. 

Profit $32,000