CG Tax: Sale Price Minus Purchase Price Or Sale Price Minus Amount Owed?
Refinanced an investment property and got $30,000 and now I'm thinking about selling it. Is my CG tax going to be based on the difference between the sale price and the purchase price or is it going to be based on the difference between the sale price and the amount of the new refinanced loan? Thanks in advance.
Sale and Purchase. If it was the other way, everyone would cash out refi to prior to selling and not pay any tax.