Deferred Payment on House Sale -- Capital Gains Tax This Year?

[Mark Beekman]

I'm looking to sell a house that I've recently rehabbed to an LLC for roughly $250k by years end. Then, next year, I plan to have the LLC list and sell the house to the general public.

I want to sell the house to the LLC and have them pay me when they sell it (the LLC pays nothing now/this year). If I do this, can I count the personal capital gains tax on the $250k on my taxes THIS year?

There is a reason for my madness, but I just want to know if the deferred payment on the sale of a house can be condsidered an "account receivable" --or something similar -- and be applied this year.

[Steve Babiak]

Mark,

Since you are in PA, if the property is in PA you can expect to pay the Real Estate Transfer Taxes on your proposed transaction(s), so that might impact what you expect to net. The PA Dept of Revenue will likely not consider this exempt.