Tax advantage on interest only?
Hello BP,
I am working on a deal with a seller willing to owner finance a 6plex. As part of my terms, i am asking for 12 months interest only at first and then start paying off the loan to the seller with interest. The seller's questions is:
Is there a tax advantage for the seller on the 12 months interest only? In other words, in 2018, the seller would only receive downpayment plus interest payments, no principal; will the seller have to pay taxes con all the income, or just the downpayment?
Thanks in advance!
Mauricio