Question:
Is the mortgage interest that I paid over the years that I owned my house deductible from the sales proceeds to calculate the profit on the sale. Please cite sources. Thank you.
Answer:
The general rule regarding calculating is that you may take of any “business expense” that was incurred in order to run the business, such as rent, utilities, taxes etc., because the expenses that were incurred are considered the price that one has to pay in order to sell the item etc. hen you sell your own private house it is the same thing. You can deduct all of the expenses that were paid in order to buy the house, such as taxes, legal fees, and all expenses incurred in order to secure a mortgage including the interest that was paid. This is because these were all needed in order to make the profit on the house.
Hatzlacha
Sources:
Psakim Uteshuvos 249 ftnt. **260, B’orach Tzedakah pg. 326.
