I don't want to pay federal income taxes on the earnings I give them, the "interest" payout.

I don't want to pay federal income taxes on the earnings I give them, the "interest" payout.

Quote from @Briley Roe: My cpa explained that I should only be getting taxed a capital gains, not ordinary income tax.

Once you pass that point, it’ll have been more than three years since you lived there, and you’ll no longer qualify for the exclusion.If you sell before March 2026, you can likely exclude up to $250k/$500k of gain from federal taxes.

As you already know, but the lurkers don't necessarily, since these are backed by the good ole' USA (we as tax payers), I want that risk to be known too. 

Picture this: Elderly parents own the family home but have unpaid IRS debt with a federal tax lien filed.

"The tax lien expires in 10 years, so we just wait it out."

It is federal Right, but take a look at the wards in Columbus or Cleveland where a ton of the houses are all rentals.

Hi guys,Will you pls help me figure out how to calculate taxes?

Using 15% for simplicity ≈ $25,875Total federal tax in this simplified example: ≈ $59,284The key point: depreciation doesn’t vanish.