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Home equity ?

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Home Equity

I bought and sold a home for my daughter using a home equity loan from my home. After selling the home, I put the equity back into my home (and still pay on it). My taxes are reading that by selling this home, I received income – but it’s not. Actually, I lost money… anyone have suggestions?

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1 Answers

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    Your taxes are NOT reading ANYTHING. You received a statement showing the PROCEEDS from selling the house. This is NEVER ‘income’. Your ‘capital gain or loss’ is the difference between what you received for selling the home and what you originally paid. Take ALL your paperwork to a CPA to properly complete the tax forms properly. If you don’t have paperwork from when you BOUGHT the home, the county recorder, or whoever handles deeds in your area, should have the records you need.

    STEVEN F - Aug 25, 2012 | Reply

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