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Updated over 10 years ago,
owner financing
I have a couple of houses I am owner financing. I have heard that you are only allowed to owner finance 2 or 3 houses and still get taxed the normal capital gains rate (on the interest you profit from the sale), anymore than that and the IRS will classify you as a dealer, and you must pay the capital gains on the full sales price of the house, even when you havent received full payment yet. Can anyone clarify this for me?
Dave