Tax benefits of 0% interest seller financing!

[Adam Scheetz]

One of the recent BP Podcasts I listened to made mention of a huge selling point that the guest used a lot. He said that when sellers say they want 2%, 5%, Etc, in interest on their seller financing, he reminds them that income received from principal payments on a seller financing deal is taxed at a lower rate that interest payments received. These have to be seperated when filing taxes. The benefit to the seller of foregoing the interest payments and doing just principal are significant because they save money on the back end when they file.

Thoughts?