Capital Gains and Seller Financing - Advice Needed

[Tom Horan]

Hey BP -

I’m looking for some capital gains tax advice as I try to convince a seller to owner finance a multi unit property.

From a tax benefit standpoint for the seller, is it more beneficial for him to sell at a lower purchase price and get higher interest rates OR sell at a higher purchase price, and lower interest rate. I can certainly crunch the numbers but I’m asking the question specifically from a capital gains tax standpoint. I would think lower purchase price and higher interest rate would be more beneficial for him. Is this thinking correct?

Thanks in advance. Tom