Selling a home by assuming the mortgage

[Josh Everson]

Hey everyone, does anyone have experience with "selling" their home where someone assumes your mortgage rather than selling for a profit? My investor friend has a lease option on my property to assume my mortgage and property so she can get the terms, while giving me $30,000 over two years for the option to assume my mortgage and property. She gave me $15,000 last year and the other half this year and will be assuming my mortgage. My question is what are the tax implications of this? What taxes do I owe if she only assumes the remainder of my mortgage vs selling the property to her the traditional route?

[Josh Everson]

Quote from @Account Closed:

Hey Josh, 

There is no difference tax-wise for the seller when their mortgage is assumed. This simplicity can make assuming a mortgage an attractive option for sellers looking to transfer property without altering their tax circumstances.

 Ahh ok, so essentially if she assumes the remaining mortgage at $200,000 + $30k option fee, my tax obligation would be on $230,000 (not discussing capital gains work arounds...)?