Owner financing help!

[Patrick Flanagan]

I know a lady that has several paid for rental properties. I’ve asked her a few times if she would ever sell and she said no I can’t because I’d pay way to much in capital gains taxes.

I’m curious what is the best way to talk with her on why selling is a good idea? Since she obviously doesn’t want to pay capital gains tax, how could I make the sale more enticing?

Is there some way I can structure a owner financed 30 year mortgage with her and divert the taxes over 30 years? Also this lady is elderly, and would probably pass the remainder of the loan off to her children.

Thanks,

Pat

[Tyler Mutch]

@Patrick Flanagan I am not a CPA, but from my understanding there is no way to take it over 30 years even if they seller finance it. it still counts in that year of the sale, that being said, long term capital gains is less than ordinary income would be, you can remind her of that. Depending on her tax situation that might be helpful. You could offer a lower purchase price with higher interest on a seller financed deal, this would let her not pay as much in capital gains b/c its a lower sales price but then she can make it up with you paying higher interest.