I have an investment property, will a HELOC on the property reduce my amount of capital gains to pay once the home is sold. The home is paid off. Thank you for your help.

1050

Level 15

Nov 19, 2023 6:16:49 AM

No.

Profit is proceeds - cost basis.

mortgages don't count.

Level 15

Nov 19, 2023 9:35:29 AM

@vzombek the capital gains is based on the ASSET (the home); a mortgage is a liability and is not part of the equation,