How Does This Work!?
Let's say I buy a house for 20K, borrow 40K from the bank, turn around sell the house for 40K and then pay off note at the bank.......would we still have capital gains tax??? Thanks 
Let's say I buy a house for 20K, borrow 40K from the bank, turn around sell the house for 40K and then pay off note at the bank.......would we still have capital gains tax??? Thanks
Yes, capital gains is based on what you bought the place for and what you sold it for.
If you are selling the property within a year, the property is not subject to capital gains tax--rather ordinary business income.