Owner Financing Seller Side and Tax events

[Matt Pich-Maxon]

Hello,

Question for CPAs and Attorneys. I have a lead who is interested in selling an investment property that has been owned since 2001. Property was purchased for around $500,000 and they are looking to sell at around $1.2M. Property has been remodeled.

Seller is interested in how carrying the note may impact depreciation recapture and potential capital gains. They are not interested in a 1031 as age of seller makes them want to step back. Also seller is not interested in Delaware Statutory Trusts at this time.

Additionally, cost of structuring and servicing the note are of interest.

Since I am not able to give advice on taxes and legal matters, I thought I would reach out here.

Thanks in advance

Matt

DRE 02100289