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Updated about 2 years ago on . Most recent reply

User Stats

18
Posts
6
Votes
Theo Z.
  • Pittsburgh, PA
6
Votes |
18
Posts

Options for Selling Rental Home to the Tenant?

Theo Z.
  • Pittsburgh, PA
Posted

I've been renting my prior residence to a family. My primary residence exclusion benefit (savings on capital gains taxes) is set to expire at the end of August.
I want to sell the property but the tenants are a wonderful family and I don't want to force them to move because I'm quite certain they don't have the means or qualifications to obtain a mortgage or a down payment.

I'm wondering if there might be any creative options or ideas for me in this situation that I might be overlooking? Perhaps a creative way to sell the house to them?

Additional info:

-My CPA helped me calculate that I will net about $10k more if I sell before Sep 1st vs after Sep 1st.

-The home is probably only worth about $170k but is owned free and clear.

-I have not brought this up with the tenants. I wanted to look into what my potential options might be before we approach them.

Thank you in advance for any insights or ideas!

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