Seller Financing

[Kimberly Rushing]

Many people proclaim the wonders of seller financing, and claim that one of the primary benefits to the seller is the "minimized tax burden." Can someone please walk me through exactly how this works? I imagine the nature of the sale (installment) allows the seller to report their capital gain in increments instead of a lump sum, thereby allowing them to remain in a lower tax bracket. Is this accurate and is there more to the story?

[Steven Hamilton II]

Tom Goans,

The OP asked a basic general question. The answers received were basic and general. When it comes to something specific I will agree yes, they need to consult who they regularly work with; however, a general question there is nothing wrong with asking an open forum that has professionals on it.

For the record, I represent taxpayers before the Internal Revenue Service. I am licensed BY the Department of the Treasury in Taxation to represent anyone before all levels of the IRS.