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Updated over 2 years ago,
Cap Gains / 1031 Exchange / Seller Financing
Scenario: I buy a house from a Seller for 900K, but they still owe 200K.
I give them 200K as my down payment, so they can pay off their loan.
They carry the remaining 700K back with Seller Financing.
They had owned it as a rental property.
Do they pay Cap Gains on anything? On 200K? On 900K?
Thanks!