*Loan,banking and credit>>>credit line

Is payment of Line of Credit balance considered income when I sell my house?

I sold my house in July 2006 for $188K. I had a $47K line of credit on the house, which was paid off when the house sold. The house loan balance was $120K. And, I paid, of course, realtor fees, etc. Is the LOC $47K considered part of my sales profit? Do I have to pay taxes on it? I also bought a house in Oct 2006 for $129K.

A single taxpayer has shelter from $250,000 of profit on the sale of their home, a married couple has $500,000 shelter. It looks like your profit is under the Capital Gains minimum. Therefore, you don't have to say anything about it on your taxes; just as long as you meet the requirement of living in the house for "2 out of the last 5 years"

If you were there less than 2 years, your gain is computed by adding what you paid for the house and the cost of all your improvements, then subtracting that from your sales price. Your loans have nothing to do with it.

Profit is Selling Price less Purchase Price minus expenses. LOC does not enter into the equation....but the interest cost might be a factor to consider.(expense)