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Updated over 5 years ago,
(Wholesaling) absentee owners worried about capital gains
Hi,
I have been running into a fair amount of out of state owners that I believe are under the impression that they will have to pay more capital gains taxes than they really will.
Recently I wholesaled a house in Union City (seller lived in Arkansas). The seller thought he was going to have to pay way more taxes than he really had to. I referred him to a CPA in the bay and then set him up with an appointment with a CPA in Arkansas.
After speaking with these people he was relieved to find out that he'd be keeping a lot more money than he thought and because this was his number one concern a few weeks later the deal closed and we made 100k.
Still though there are so many property owners I talk to (not eligible for 121 exclusion) that just say "I could never sell because of the taxes". Then when I try to send them to my CPA they're just like "I already have a CPA I know how much i'd have to pay etc".
Does anyone have any insight on this? I'm looking for responses from experienced investors that have had to deal with this kind of objection and which techniques they used to close the deal.
Thank you!
Max