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When calculating a capital gain on the sale of ...
Sent to Tax Experts February 08 08:35 PM

When calculating a capital gain on the sale of investment real estate, is the outstanding mortgage on the propery deducted from the gain.

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February 8 8:42 PM (6 minutes and 46 seconds later)
         
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No, the mortgage is separate from the gain/loss calculation. The gain is calculated as "net amount realized" minus "adjusted basis". Net amount realized is gross sales price minus commissions and other selling costs. Adjusted basis is original cost plus cost of any improvements minus accumulated depreciation.

joN@jonacpa.com



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