Does anyone know if I will have to pay taxes in this situation. I bought a house for $10,000. I got a loan on it for $17,000. I sold it for the amount I owed on the loan for $17,000. Am I liable to pay taxes on the $7,000 that is greater than what I paid for it.
Yes
Unless the property was your primary residence for at least 2 years.
Paul
…or if you made ‘capital improvements’ to the property. You may also be able to claim some of the closing costs…
Keith
Thanks to all that responded!