Selling property, thinking about putting down lump sum towards mortgage to reduce bank penalty. Payout at closing would be higher. Would this increase my taxes?

3- The net sales proceeds are the selling price and the cost is the original purchase price. The original purchase price should be shown on the purchase and sale agreement when you first bought the property. 4-4-Land transfer tax, legal fees paid and other closing costs can be added to the cost of the property for tax purposes. Likewise, commissions and selling expenses can be deducted to arrive at the net sales proceeds.