Pulling out initial down payment...taxed?
Hello beautiful people of BP,
So, I'm no CPA, but it would seem that if I do not apply my original down payment on a property towards the new purchase, it would not be taxable as it wasn't actually a gain. So if I originally bought a $100k property w/ 20% down, I should be able to pull out that $20k after the sale and not be taxed on it.
Anyone know if that's kosher with our friends at the IRS?