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Sold my home. Is mortgage pay off deductible or taxable? Had…

Sold my home...

Sold my home . Is mortgage pay off deductible or taxable?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Had a mortgage on my home which was paid off out of the sale proceeds. Tax foms do not address how to handle mortgage payments,

Accountant's Assistant: Is there anything else the Accountant should be aware of?

IS there a form that covers this issue

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Answered in 5 minutes by:
3/12/2018
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,643
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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My name is***** will assist you today.

Please give me one moment while I review your question and type my initial response

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The mortgage pay off is neither deductible or taxable.

Generally, the mortgage balance will represent your cost basis in the home and used, in part, to determine your profit or loss.

Please let me know your follow up questions.

Thank you.

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Customer reply replied 4 months ago
irs form 2119 doesnt seem to indicate that mortgage is part of basis?

Part II line 7 "Basis of home sold (see instructions)"

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I believe this form was discontinued years ago.-- Give me one moment to look

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Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997

You no longer use form 2119.

https://taxmap.irs.gov/taxmap2013/pubs/p523-002.htm

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If the home was your primary home for at least two out of the previous five years you may be able to exclude from income up to $250,000 for single filing tax payers and $500,000 for tax payers who file married filing jointly.

Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,643
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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