Consider installment sales for real estate

Consider installment sales for real estate

Ron Rowell Ron Rowell

Ron Rowell

Owner at Rowell CPA Group and Rowell Payroll Company

Published Dec 18, 2017
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With an installment sale, you may be able to lower your total tax on the sale of the property by spreading the income over several years. In addition, the buyer will typically pay a rate of interest to you on the remainder of the amount due that is higher than a typical bank loan.                                                                                                            

There are a few tax hiccups that could affect your sale, however. If you sell property to a related party and the property is then disposed of within two years, in most cases all the remaining tax comes due immediately. Give us a call for help avoiding tax traps during your real estate sale.

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