Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 8 years ago,

User Stats

120
Posts
18
Votes
Dave S.
  • Investor / Wholesaler
  • Erie, PA
18
Votes |
120
Posts

Seller in seller finance deal worries about capital gains

Dave S.
  • Investor / Wholesaler
  • Erie, PA
Posted
The situation is as such, Seller owes house free and clear Seller is offering me 100% seller financing I'm going through an attorney to get the mortgage note and all paperwork together. Will the seller be responsible for paying capital gains on the property in the tax year of closing???? Or when I go to refinance the property and he actually gets the funds? It's hard for me to believe that someone will be responsible for paying capital gains / taxes on money that they don't have in hand. Once the seller gets the funds (I.e I refinance him out) and he gets the money then he can get taxed on it. Up to that point the only taxable funds would be the income from my monthly payments?

Loading replies...