Selling Investment Property Capital Gains

[LuisB12]

I had an investment property long term capital gains.

Purchase 200,000 sold for 350,000 over a year after purchase.

Can the lien payoff and any realtor fees or commission be deducted from the gross proceeds when I file taxes?

How about property taxes or interest payments?

[JohnB5677]

Yes, you can deduct realtor fees, property tax and interest, but the payoff of a lien (like the mortgage principle) is not deductible. However, there are other concerns.

In addition, you may have been required to take depreciation over the life of the property investment.  

• You are required to "recapture" depreciation allowed or allowable when you sell the property.
• This means you have to recapture it regardless of if you took the depreciation or not
• Depreciation Recapture: Definition, Calculation, and Examples

I recommend you consult a tax professional soon to see if this condition applies

You can get credit for an amended return back to 2021 if you file by April 15th 2025