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.

Tax Glossary

Net operating loss

A business loss that exceeds current income may be carried back against income of prior years and carried forward as a deduction from future income until eliminated.

More terms