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We need to be clear if you realized a gain on that sale.
If you do realize a gain - that gain will be taxable.However - we need to verify if you correctly calculated the gain
That is (selling price) MINUS (adjusted basis)The basis is your original purchase price and it is adjusted mainly by improvement expenses and by depreciation for the time the property was rented.
The mortgage amount you paid out of proceeds is not relevant.
To report the sale transaction - use form 4797 - report as separate items - the land and the building.
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