Installment Sales

Capital Gains Tax Planning | Benefits of Installment Sale

Friday, January 2, 2009
By Property Management Software

Turn a higher profit using installment sales. Say you sold a property for $200k that you purchased for $150k. For simplicity, assume a same-year sale and no depreciation has to be recaptured. If selling the property using a straight sale, you would have $50k in capital gains and would therefore owe at least $7.5k in... »

Capital Gains Tax Tips | Minimize Taxes Using Installment Sale

Monday, December 1, 2008
By Property Management Software

Selling property usually results in a gain for which you have to pay a capital gains tax. You can reduce tax liability associated with this capital gain using an installment sale. An installment sale is a transaction in which at least one payment for the sale of property is received after the tax year of... »

Charge Your Own Mortgage Interest | Installment Sale Capital Gains Tax Planning

Monday, December 1, 2008
By Property Management Software

One method of seller financing is to hold a note for many years. For example, you sell a property to a buyer who has no down payment. He takes an 80% loan from the bank and 20% down payment loan from you. Once he pays down his first mortgage, he will pay on your... »