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All Forum Posts by: Dave Bryant

Dave Bryant has started 1 posts and replied 2 times.

Post: Capital Gains on Land Contract Sale

Dave BryantPosted
  • Real Estate Investor
  • beckley, WV
  • Posts 2
  • Votes 0

The interest you receive from the sale is taxable each year. The principle is taxable only when the principle paid to you has gone over your purchase price plus any improvements. So you must keep track with your ammoritization sheet.

Post: owner financing

Dave BryantPosted
  • Real Estate Investor
  • beckley, WV
  • Posts 2
  • Votes 0

I have a couple of houses I am owner financing. I have heard that you are only allowed to owner finance 2 or 3 houses and still get taxed the normal capital gains rate (on the interest you profit from the sale), anymore than that and the IRS will classify you as a dealer, and you must pay the capital gains on the full sales price of the house, even when you havent received full payment yet. Can anyone clarify this for me?

Dave