Is gross profit or net profit considered for taxes?

[Zachary Thompson]

I'll be as short and to the point as possible. I'm purchasing a property subject to the existing mortgage. To do so I'm using a business line of credit to pay for everything from start to finish. For sake of simplicity, lets say purchase price shows $50k, (remember it's a sub to deal so that $50k mortgage isn't paid off yet) and I sell the property for $200k. That shows a $150k gross profit. However, I borrowed $100k from a business line of credit which I had to pay back after the sale plus pay off the $50k of the existing mortgage. Leaving a net profit of $50k. Which number will be considered for tax purposes in this situation? Gross or net profit? 

P.S. I dont know if it matters but this transaction will be through my single member LLC

[Account Closed]

Quote from @Zachary Thompson:

I'll be as short and to the point as possible. I'm purchasing a property subject to the existing mortgage. To do so I'm using a business line of credit to pay for everything from start to finish. For sake of simplicity, lets say purchase price shows $50k, (remember it's a sub to deal so that $50k mortgage isn't paid off yet) and I sell the property for $200k. That shows a $150k gross profit. However, I borrowed $100k from a business line of credit which I had to pay back after the sale plus pay off the $50k of the existing mortgage. Leaving a net profit of $50k. Which number will be considered for tax purposes in this situation? Gross or net profit? 

P.S. I dont know if it matters but this transaction will be through my single member LLC

It's purchase cost, minus sales cost, minus carying costs. It doesn't matter that you borrowed money to do the deal. It does matter about the payments you made on that borrowed money.
So, a simple transaction would be this SAMPLE

Bought for              $ 50,000
Sold for                  $200,000
Gross Profit            $150,000
               Minus
Closing costs to buy  $2,500
Mortgage payments  $3,000 
Property Taxes          $1,000
Rehab costs              $5,000
Other Expenses         $      0
Title & Escrow to sell $2,000
Real Estate Agent 6%  $12,000
          Leaves           $124,000 taxable

Borrowed money isn't taxed