TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Question

Selling Investment Property in an Estate

Forum|Forum|1 year ago
May 21, 2024
1 reply
0 views

I have an investment property that was sold in an Estate which had a private mortgage payoff. I have included the sales expenses but it says not to put mortgage payoffs in this category. How do I include the payoff to reduce the capital gain? Any help would be appreciated.

TurboTax Business Windows

Employee

@debothomp10 wrote:

How do I include the payoff to reduce the capital gain?

The mortgage payoff (the balance of the loan due) does not factor into your gain/loss calculation.

You simply subtract your adjusted basis from your sales price (less selling expenses).

debothomp10Author

The payoff was for a divorce settlement agreement. If he ever sold the property the ex-wife was entitled to a percentage that equaled $82,000. Can that be a deduction?

Employee

Who is "he"? What were the terms.

Regardless, if the proceeds were split with another party, then only the proceeds received would be factored into the gain/loss calculation.