Selling primary residence seller finance tax question

[Simon Martinez]

So I’m looking to sell my primary residence and found a potential buyer that stated they would like to buy my home seller finance .

My question is, what are the tax implications for that . I bought it for about $80,000 and if sold it would sold for $230,000. I was looking forward to getting the tax benefit of selling my home for up to $250k tax free gain .

However my question is if I sell it seller finance it now is considered a installment sell which makes me wonder do I still get to get the full amount tax free ?

Or do I have to pay the taxes on the gain if i do the seller finance route .

[Bill B.]

Unless you are getting AT LEAST 20% down and charging in excess of 8% interest. I don’t see what you’re getting out of it. You’re risking rising inflation or a housing crash apparently with someone who doesn’t qualify for regular financing.  One makes your interest charged not worth the risk, the other makes you stop receiving payments while the “buyer” lives there for free until you can foreclose and sell at the new lower market value.