selling rental property

[DWoods]

My brain isn't working well--

if you bought a rental property for $150,000, and a few years later sell it for $300,000

(not adding/subtracting costs and basis here), you have a profit of $150,000.

However, you still had a loan of $90,000.  Do you subtract the amount of the loan from the profit  to get to the net profit you pay taxes on?

[sjrcpa]

No.

[abctax55 · Accepted solution]

Did you report that original loan as income when you got it?   Most likely not, so paying it back isn't a *deduction*.

[DWoods]

Thanks.  Got it figured out and realized the answer was right in front of us.  My brain hurts!