All Forum Posts by: Andrew Meringoff

Thank you so much for helping me. I couldn't figure out the language or how to incorporate the interest into the payment so this was huge help to me. 

It was driving me nuts cause I understood the basic framework but not the details which is what he is going to want know and understand. 

Im not sure about what he wants to do with cash. We will see. 

Situation:

Found a seller who wants to sell but doesn’t want to pay 300k gain all at once.

Pure vacation property/second home. Bought for 359k will sell for 659k in this example.

Assuming 150k down payment in 2024 

50k annual payments for a year for 4 years 

259k ballon payment 

I thought 50% of each payment would be cap gains but then I read unstated interest payments and I’m lost.

What portion of his annual installment payments will be interest?

Can someone explain to me so I can explain to him how the deal would align with his stated goal of not paying 300k gains all at once? I thought I understood until I read section 483 and section 1274 and now I am lost.

Please help and thank you.