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Updated over 8 years ago on . Most recent reply

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Ronda Doxey
  • Real Estate Agent
  • Houston, TX
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Owner Finance wraps and capital gains

Ronda Doxey
  • Real Estate Agent
  • Houston, TX
Posted

If you are selling a rehab as an owner finance, do you have to take all the capital gains in the year you sell it? I have heard both yes and no. My CPA is hesitant and says I need to take the gains all upfront but that it is very grey...

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

First, there are no capital gains on a flip, it is ordinary income.

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