Owner can’t depreciate property and wants to sell creatively

2 Replies

Property owner is no longer able to depreciate property and said that if he sells he’d need to pay 20k. He asked if I would be interested in doing something creative with him. I am not an accountant so I’m not really sure of all the options but if he were to owner finance it, would that help him out? Are there any other options? Thanks

He can stretch out the tax payments by owner financing or, probably more correctly, calling it installment payments.  For example if you paid 5 equal payments over 5 years, he should be able to stretch out the tax over those 5 years too.

@Vince Lucas

Yes, it is possible, but I caution you to stay away from venturing into tax advice, for liability reasons. He needs to get his ideas run by his own accountant. For you - as long as the deal works, his taxes is not your concern, other than for negotiation leverage.