Attn: Accountants
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Attn: Accountants (by DJ [VA]) Apr 10, 2024 9:38 PM
       Attn: Accountants (by 6x6 [TN]) Apr 10, 2024 9:48 PM
       Attn: Accountants (by Phil [OR]) Apr 11, 2024 1:26 AM
       Attn: Accountants (by GKARL [PA]) Apr 11, 2024 7:07 AM
       Attn: Accountants (by Ray-N-Pa [PA]) Apr 11, 2024 1:45 PM

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Attn: Accountants (by DJ [VA]) Posted on: Apr 10, 2024 9:38 PM

I know at least a couple of you are professional CPA's, so this question is for you.

Really, it's a tax question - for anybody who knows.

If you sell your primary residence, you get up to $500K profit tax-free as a couple.

What if you sell it by seller financing? Is that income (the mortgage payments you receive) tax free every year?

What if the sellers die, & payments continue to the heirs? I don't suppose it would be tax free to them?

Attn: Accountants (by 6x6 [TN]) Posted on: Apr 10, 2024 9:48 PM

Good question.

Attn: Accountants (by Phil [OR]) Posted on: Apr 11, 2024 1:26 AM

Have to report the "interest" as income.

Attn: Accountants (by GKARL [PA]) Posted on: Apr 11, 2024 7:07 AM

The exclusion is still available. Interest on the mortgage taxable to recipient.

Attn: Accountants (by Ray-N-Pa [PA]) Posted on: Apr 11, 2024 1:45 PM

You can always google "121 real estate exchanges".

You claim the sale in one year - so you claim al; the income. Up to $500,000 (married couples filing jointly or $250,000 if filing as a single) will just wash out. You claim it all at once as you sold an asset.

Then if you elect to do an owner finance, you claim the interest that you receive annually. If you do a contract for deed, you don't do that until the deed transfers.

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