Submitted By: Maurice
Answered: June 22, 2015 8:55 am

Is my mortgage payoff considered a selling expense for my residential rental property? (The property was used 100% for rental.)

The payment of principal is never a deductible expense. However, check the payoff information to see whether there were any fees paid in addition to principal; the fees may be considered a selling expense.

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Tax Glossary

Partnership

An unincorporated business or income-producing entity organized by two or more persons. A partnership is not subject to tax but passes through to the partners all income, deductions, and credits, according to the terms of the partnership agreement.

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