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ways2save
February 8, 2022
Question

Is the loan balance due when selling a rental house deducted as a sales expense? You only receive the sales price less payoff and other deductible expenses.

  • February 8, 2022
  • 1 reply
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We sold a rental house in 2021 that had a large balance due on the loan.  Do we get to deduct that as an expense? We have to show it in the sales price but we never received it.

1 reply

LeonardS
LeonardS
February 8, 2022

No, when you sell a rental house you can not deduct the loan balance as an expense.

 

Generally, these expenses can be deducted when selling a rental house:

  • Appraisal fees.
  • Inspections.
  • Loan origination fees.
  • Title fees.
  • Transfer fees.
  • Mortgage interest.
  • Mortgage points.
  • Real estate property taxes.
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