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Hi. My name's Lane. I can help.
For tax purposes, Capital Gain = Sales price - ( purchase price + improvements)
Essentially, what you get out of it what OVER you have in it (what you have IN it it termed basis)
The loan is irrelevant to gain. The loan is just how you FINANCED the purchase, (how you came up with the money to purchase)
The there's one other piece for a rental ... You have to lower the basis by the amount of depreciation you took (or should have) becasue IRS wants to recapture that as part of the gain