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Updated almost 7 years ago, 02/09/2018
2 Parcels (3 units) Owner Financing Questions
I am looking to purchase a package of properties in Ohio. The owner is interested in owner financing but has questions about the tax implications for him and how the gains would be handled.
Details:
- 2 parcels
- 1 single family home (worth approx. 80k) has 60k in equity
- 1 duplex (worth about 100k) owns free and clear
- Wants to sell both as a package
Lets say I offer to buy for 170k with following terms:
- 20 Years at 5%
- 5k down
What will he pay on capital gains each year? What other details pertain to his tax liability?
Thanks!!