Need help with a big tax question

[David Zheng]

Hey guys have a quick question about selling a refinanced building

*not the exact numbers at all*

Lets say I buy a property for 100k (20% down), put 50k (cash) into it. now Im "150k"  in or 70k of my own cash in.

the thing appraises for 400k by my bank and I do a cashout refinance at 75% LTV

so now Ive pulled 220k  from the cashout refinance (300-80 I still owe) and I buy some other buildings with that 220k. now I owe 300k on the building and have 100k "equity" in it.

Finally lets say I sell this building for 380k. and basically  come out with 80k.

now for tax purposes, did I technically make money or lose money? since I basically bought it for 150k and in the end sold it for 380k does that mean I made 230k?

or does it mean I made  a LOSS since it's under the 400k I refinanced it for.

thanks!

[Wayne Brooks]

$$230.. Your financing/refinancing has no bearing.....just your cost verses sale price, less closing costs.