Capital Gains on Owner Financed Deal?

[Bruce Jones]

Good afternoon Bigger Pockets Community,

Long time listener, first time caller. I have a property I purchased via land contract/owner financing deal 5 years ago. I refinanced with traditional financing and a simple fee closing in 2021. During this time I also added my wife to the title because I wasn’t married prior. We’re now preparing to sell mid-2022. The home is located in Virginia and the original deal was for $270,000 and we owe $200,000 on the property. The resale will be roughly $450,000-460,000. I’m curious if there will be any capital gains tax on the profit.