Benefit to seller doing owner finance? - Posted by Wholesale Ron

Posted by JT-IN on October 09, 2002 at 22:29:24:

Ron:

You don’t really give enough info for anyone to accurately answwer this question. Here’s why…

Is this property owner occupied 2 out of the last 5 years…? If so, then the owner will owe no taxes on the sale… as up to 250K for single peron and 500K married is tax free if owner occ, and meets the requirements above.

Now, if it was a rental, then the above is out the window. In order to answer, the length of holding would have to be known, as well as improvement costs, acquistion costs, etc… If it is renatal property, then there are some tax benefits to selling over time; maybe not substantial to the average person, but nevertheless, there are some benefits.

Post more specifics and someone will provide more details.

JT-IN

Benefit to seller doing owner finance? - Posted by Wholesale Ron

Posted by Wholesale Ron on October 09, 2002 at 19:31:32:

Howdy folks!

Got a seller that is worried about getting taxed by selling me a property for all cash. He’s got some back property taxes on it and a home improvement loan and is only clearing about $20k by selling to me all cash.He doesn’t want to lose out on the profits by having to pay most of it to Uncle you know who!

I mentioned that he can owner finance which will benefit him tax wise.

Although I came through as though I knew what I was doing, can anyone help me explain to the seller how this does beneifit him? He’s gonna ask for the details later.

Thanks so much!

Ron