Property gains taxes involved with owner financing

[Monique Smith]

What are the rules regarding owner financing and property gains taxes? If I decide to sell my house with owner financing and take a balloon payment after 5 or 10 years, will I be required to pay property gains taxes on the balloon payment or no because the actual sale date was 5 or 10 years before the balloon payment? I know you can’t rent your house for more than 3 years if you don’t want to pay property gains taxes but not clear about if you do owner financing with a balloon? Thanks