Tax Benefits of Seller Financing

[Mike Griffin]

Hello! I am in discussions with a seller and I’m pitching seller financing. The seller wants $1.8M and they own outright, for decades. It’s in southern Maine. 
What tax benefits can I spell out for them? They’ll lose a big chuck in taxes from a traditional sale. But monthly income will be taxed less? Anything else?

Thank you!

Mike

[Michael Plaks]

@Mike Griffin

First - you should not sell (or "spell out") ANY tax benefits to sellers. You can only suggest that they discuss it with they own tax advisor - because everyone's tax situation is unique, as are everyone's goals, financial literacy, family complications and whatnot.

The ONLY correct advice is: "from what I heard, you MIGHT have substantial tax benefits by agreeing to owner-finance it to me - but please consult your own tax advisor."

That said, I expect you to ignore my suggestion and proceed "educating" this seller anyway. At least read these discussions: 
https://www.biggerpockets.com/forums/51/topics/717818-tax-be...
https://www.biggerpockets.com/forums/51/topics/1054266-tax-i...
https://www.biggerpockets.com/forums/51/topics/1069885-poten...