Subto & Seller Financing Tax Incentives

Member since 2023 · 5 posts · 1 vote

Newbie question. In subto and seller financing deals does the buyer still benefit from the real estate tax incentives as one would in a traditional deal?

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Randy Rodenhouse
Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
3y
If you buy a house subject to or with seller financing than you as the buyer would get the tax write off from any interest, taxes paid, insurance paid since you are the owner of the property.
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Wilfred Morales
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Member since 2023 · 5 posts · 1 vote
3y
Hey @Randy Rodenhouse thanks for the response. Just a follow-up…what about depreciation?
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Chris Davidson
Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
3y
Quote from @Wilfred Morales:

Hey @Randy Rodenhouse thanks for the response. Just a follow-up…what about depreciation?

Yes if you take title you will get to depreciate it.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Not depreciation, or any other tax incentives that come with homeownership. The sellers benefit greatly on not having to pay capital gains upon profits made from the sale if you are putting a minimal down payment.
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Randy Rodenhouse
Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
3y
Yes, you can appreciate it as long as you’re on title as the owner
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
3y
If you own the property and have it as a rental, you should be eligible to claim depreciation.

The thing that you want to avoid is getting into an agreement where you have an option to purchase the house which may or may not result in ownership.
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