Tax Strategies for Selling Properties

[Wesley Hoover]

Is there a tax deduction/protection strategy for a 67 year old to hold a note on a capital gains tax? For instance will the seller pay less in taxes on the income he makes from 3k a month as opposed to a bulk payment of 500k? With a yearly salary of 400k a year already.

[Eamonn McElroy]

@Wesley Hoover

My 2 cents...if this is an unrelated party, encourage seller to consult an independent attorney and tax CPA, and don't try to be the friendly neighborhood amateur tax advisor.  (He's going to need one anyway if he gets into an installment sale with you.)

It's too easy to get sued by the children or other family if they perceive the you didn't have the seller's "best interest in mind".  It doesn't mean you can't give the seller good options, just maintain independence in both fact and appearance, and let him choose the path forward with his independent counsel.