Posted by: Robert O’Neil, CPA
Financing the sale of your home can be a great way to sell your home and make a little extra money in the transaction.
The basics of a seller-financed sale are that you sell your home, issue a loan to the buyer, and collect interest and principal each year until the buyer pays off the loan.
In addition to receiving interest income on the loan, any gain on the sale is excluded up to the section 121 gain on the sale of a personal residence limits. These limits are $250,000 for a single taxpayer or $500,000 for a married filing joint taxpayer.
This leaves one major question: What happens if the buyer defaults?
Click here to learn more about financing the sale of your home.
If you have questions on this, or any other tax or business related issue, please contact the experts at Zinner & Co.
