Hi, a couple of weeks ago I learned, from an answer to a question I posted on BP, that I can't 1031exchange earnings from the sales of mortgage notes. Does anybody know of any other ways to reduce the tax on those gains. Also, do I need to pay tax on the entire sale price, or just on profits?
Thanks in advance for the advice,
If you hold them longer than a year you should be able to claim profits as long term capital gains which would lower the tax. I'm just speculating though, I don't have any personal experience with notes yet.
Tax would be on profit
Thanks, but what about the payments I receive? Do I pay tax on interest earned, or on the whole payment?