Net Profits from a Home Sale

If my house has a second home mortgage linked to it, are the net profits calculated for capital gains taken from the original home purchase price, or does it calculate the additional 2nd mortgage along with the purchase price?

posted

Hello,

The number or amount of mortgage on the house has no effect on the net profit.

To figure your net gain take the sales (plus cost of sale) price minus the cost (purchase price plus improvements) and that will get you the gain or loss

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