Ok, I see now. I missed that the total basis includes the amount you borrowed. When you include borrowed funds in the basis you don't need to deduct the mortgag...
Then if the mortgage payoff isn't deducted that amount would flow though to profit and capital gains tax would be due to it. That doesn't sound right to pay tax...
yes, I agree, but the issue is around the definition of Sales Price. The definition I see in publication 523 is that the sales price is 'everything you received...
what I can find in Publication 523 in that the Sales Price is everything You receive for selling you home. So it is the amount after the mortgage payoff is remo...
