All Forum Posts by: Sarah Jones

So is there anyway to pay the capital gains tax in payments since the subject to sale is not money paid all at once?

I understand how capital gains work, but how does it work on a subject to existing mortgage sale... since you are not paying $300k all at once.. you are doing it in installments.. can you spread the gains over the life of the loan?

Yes its not subject to because there is no mortgage got that.. its free and clear so there would be a note i understand all that. I was asking a different scenario.

so if you live in the house 2 out of the last 5 years.. and you profit $250 (single) there is no capital gain when you sell... are there any other tax that you have to pay when you sell besides documentary transfer tax ? seems like you can make money selling and not pay tax .. just live in it for 2 years.. any other tax you need to pay when you sell ?

B. how do the irs knows you live there for 2 years.. not trying to do fraud or anything but how do they know.. can't you just say it?

1. on a free and clear property.. when you make a note.. must there be a percentage of interest that is charged. If i get the 70 year old lady to agree to not charge me any percentage and pay the $300k in monthly payments does that look like me taking advantage of her and if so what are my consequences?

2. if she pass away without a will and i have a note to her... what happens when she pass away... do i stop paying the mortgage since she has no will?

I talked to a local flipper he says since the house is worth 300k and he owes $300k there is no capital gain because he is not gaining anything becuase the bank will get all the money.. is this true?

Property is free and clear... you would do a subject to agreement with her.. if she does.. do you keep the property and dont have to make the payments anymore?

This is an interesting question.. What happens if you buy the property from a lady with the only heir is a cousin and you buy it subject to .. she is 70 .. what happens if she pass away... is the property yours to keep?

I have a girl that is willing to do a subject to do, but this one has an option arm. She had a 5 year option arm... with 4 payment options. One of the payment was negative, one was interest only, one was princal interest, etc... the 5 year fix has expired and now it is adjustable... her payment now is $2700 per month PITI fully amortized... my question is if i take this house subject to .. i am fine paying $2700 per month but becuase this loan is not fixed... is this a good deal to take out? in the worst case what can my loan amount be?

im not understanding option arm to well... what happens to the loan after the fixed period.. do i have to refi again? what if i dont refi? can i keep paying it for 30 years?

C. luckly he is a cpa and knows aobut capital gains... what happens if an owner sells the house subject to and later finds out he has to pay capital gains and cant afford it..? He has no money to pay for it? I'm sure a lot of people do subject to deals.. and are not CPA and later find out they cant afford the capital gains what happens?