I have a non-owner occupied home, purchased at $200,000. A few years later, I took an equity loan out for $80,000. The next year I sell it for $300,000. Will I pay capital gains tax for $100,000 or $20,000?
by 
mikey00
ANSWERS: 2
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I was wrong. Here's why. It depends on what you did with the $80,000. If you bought a new boat with it, and you are keeping it, that counts toward your capital gain which would amount to $100,000. If you used it to improve the house, it counts toward the value of the home, and not as income, or gain, because you get no benefit from it in the end, so your gain would be $20,000. You still need to count in all your fees and payments over time, so that all changes it as well, but you get the idea. I hope.
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Are you seriously asking a random Q&A website for advice on your taxes? Call any one of the many qualified tax preparation companies out there and get a real answer. Would you really risk potentially paying thousands in taxes to avoid talking to a professional?
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