Another Capital gains question

[Andy Young]

I am selling a multifamily I bought for 100,000. Over the course of owning it I have paid off $25,000 of what I owe on the mortgage.

I paid 25,000 and got a mortgage for the 75,000.

I am now selling it for 200,000.

I am getting really worried about the tax bill.

My questions are (and I appreciate any answers you can give)

1.  Do I have to pay tax on the original $25,000 money I invested?

2. Do I have to pay taxes on the $25,000 of the progress I have made on the principal?

3.  Do I have to pay tax on the money I pay back to the bank (the $50,000?)

4. I understand that I will have to pay back any depreciation I took on previous tax bills.  The formula for this is (building cost/27.5 * numbers of years owned?  OR is it this number multiplied by a percentage? (I am staring right at my tax return from 2017 and can not figure out where this number is!)

Thanks for any help!

[Basit Siddiqi]

@Andy Young

Did you reach out to your accountant to determine what your gain will be? He has your tax profile and should be able to answer this question easily.

A lot of the items you mentioned have no baring on how much tax you will pay.
Amount you owe the bank, deposit made at closing, remaining balance you owe the bank, etc.

Gain is calculated as sales price less selling costs less adjusted basis.
Your accountant should know what adjusted basis is in the property.

Your accountant will also know what capital gains tax rate you are in and if you owe the 3.8% net investment income tax.

With that said - you may want to do a 1031 exchange to defer the payment of tax.