Section 121 exemption and owner financing

[Arash Malekzad]

Hi everyone

I have the opportunity to seller finance my house with a balloon payment due in 5 years. With high interest rates, it actually seems like a great opportunity. I’ve been living in this house for more than 2 years so I should be qualified for section 121 exemption. I was wondering if that would still apply to my balloon payment in 5 years or would I need to pay regular tax on that? Also any tips for owner financing and your experience with it is very much appreciated.