This dude nailed it.And if you want to be even more precise, here is the standard.As we have observed in countless opinions, deductions are a matter of legislative grace, and the taxpayer bears the burden of proving entitlement to any claimed deduction.

I plan to reinvest the proceeds into a newer home.As mentioned, how much you owe on the property has no bearing on your gain, or the taxes due on that gain. 

I always suggest getting a survey done, and if you have past soil sample reports even better.  

Thank you @Russell Brazil, also, would owner financing have any bearing on the sale date? 

Hello BP community.I am a construction engineering student at Concordia University, Canada.For our cost estimation project, we need to know the total cost of finished two-story wood-frame building with a basement and load bearing walls.

Highest form is an extensive gut-out, remove all interior non-load bearing walls and basically a new floor plan, nothing is salvaged, new roof finish (minor repairs on sheeting), new siding finish, about 3 months to complete (from contract signing to turn-over) with 1 month allowance for unforeseen events.

@Kevin Auyong   it was 4 or 5 years ago  and I don't know that he went into specifics however I could surmise its the same old out of state tune... and with Texas property tax's soil conditions and lack of any appreciation in those days.. and not being local that probably added up to his desire to sell and get back into the CA.. market.Before I posted on BP I was a frequent contributor on a site in AU... and there was a running debate on Texas vs other markets..

Bear in mind however, that theory and practice are totally different things.

Significant upcharges and kickbacks were verified and the problems were not being fixed similar to what Bear Dawg describes.  

The vary nature of an appreciable asset is that it is a mirror of the state of inflation and the market economy. there in it will have a cyclical nature, just as does our economy, Bears & Bulls.