Advertiser Disclosure

advertising disclaimer
Skip to main content
ask millionacres

Ask Millionacres: What is My Cost Basis?

[Updated: May 20, 2021 ] Sep 19, 2020 by Matt Frankel, CFP

Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

I have a question on an investment property. The property was purchased for 74,000 and put in service in 1986. Later in 2011, it was refinanced with cash out of $200,000. The property is still in service as of today. Would the cost basis on the property be $74,000 plus $200,000 (current mortgage amount) and depreciated amount over the years? I'm considering selling this property this year.

Got $1,000? The 10 Top Investments We’d Make Right Now

Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now. By signing up to be a member of Real Estate Winners, you’ll get access to our 10 best ideas and new investment ideas every month. Find out how you can get started with Real Estate Winners by clicking here.