Land contract vs seller mortgage and capital gains

3 Replies

I am trying to structure a deal with a seller for owner financing. We have the numbers worked out and he was going to do a seller note and hold a mortgage. His accountant has told him that it would have to be a land contract to defer capital gains taxes. I cannot find information to confirm this. The issue is everything says "installment sale" and I don't know if that includes mortgages.

Any ideas?

Originally posted by @Jason Dillard :
@Erik Matthew Installment sale is CPA word for taking payments over time. A land contract is a type of installment sale.

 Thank you. I finally found the IRS documentation for this. Nice to see someone close. I am about an hour from you.