Good book on seller finance

[Horacio Gutierrez]

Hello,

Is there any good books on seller finance?

[Account Closed]

Originally posted by @Horacio Gutierrez:

In a seller finance does seller pay more capital taxes or ordinary taxes or both if they dont do seller finance?

 It depends on how title is held, how long he held title, and if the seller lived in the property for 2 of the last 5 years. 

If the seller "sells"on a lease option (it's only an option not a true sale), the seller retains title & gets the tax write offs. This is the best tax scenario for an investor selling a property.

If the seller sells using "Subject To", title transfers to the buyer and the buyer gets the tax write offs. 

If the property is "free and clear" and the seller does seller finance, a mortgage is created by an attorney & the buyer makes payments to the seller and the buyer gets the tax write offs.

If the seller has the property for fewer than 365 days, he pays short term capital gains. 

If the seller sells after 365 days, it is long term capital gains, unless the seller lived in the property 2 of the last 5 years, then there is no capital gains.

A good example of optimal tax write offs and profitability is in the following spreadsheet. It is hard to do in California because of the costs of properties and high taxes but is wonderful in states like Arizona where taxes and properties are reasonable.

Average Turnkey Cash Flow Per Door In Phoenix Metro Area No Bank Needed

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

Disclaimer: I sell Turnkeys