Owner financing tax question

[Chance Thurman]

This is something that was brought up in one of the more recent podcast. I’ve went back through and listened to several podcast but can’t find it and I don’t remember which guest said it.

It went something like this.

If I were owner financing a home from a seller it would be better for them if I were to raise the price a little and have them give me a 0% loan. I’m guessing this would be due to them having to pay taxes on the interest income but not having to pay taxes on principal reduction payments. Does that sound correct? Is there anything more I should know about this or is it literally that straight forward?