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cmartino0900
February 23, 2025
Question

Sale of Land

  • February 23, 2025
  • 2 replies
  • 0 views

I purchased a one acre lot in July 2022 for $27,000 and took out a mortgage to purchase it. I sold it in May 2024 for $47,500. Can I deduct the remaining mortgage balance and the seller fees on my federal income taxes?

2 replies

DoninGA
DoninGA
Employee
February 23, 2025

You cannot deduct the mortgage balance as a Selling Expense/Cost.

 

Selling cost can include escrow fees, legal fees, real estate agent commissions and advertising costs.

 

Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)

M
Mike9241
February 23, 2025

the mortgage is never part of the gain or loss

your gain is $47,500 minus selling and certain closing expenses minus the $27,000 increased by certain closing costs on acquisition like title fees. 

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