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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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In 2001 I purchased my secondary home for 107,000. $5000 down

Customer Question

In 2001 I purchased my secondary home for 107,000. $5000 down and a mortgage of $102,000. I just sold that home for the outstanding balance on the mortgage of $64,000. Is this considered a capital loss or do I owe taxes of the $64,000 that paid off the outstanding mortgage?
Submitted: 5 years ago.
Category: Tax
Expert:  Marvin,EA replied 5 years ago.

Marvin,EA :

Hello and thanks you for using Just Answer. If the second home was not used as investment property the loss can not deducted and since the home was sold for less than the purchased price you have no gain from the sale of the second home.