Need to make tax friendly offer. - Posted by Barry (FL)
Posted by Barry (FL) on October 13, 2003 at 11:49:44:
Hello ladies and gents. I’m looking for some options on making an offer and the tax implications for the seller, here’s the story:
owned free and clear
has been a rental property for 17 years
vacant, needs little if any work
was property managed @ $825/mo market rent 900-950
owner netted $742.50
management company told her they didn’t want it anymore.
wants to sell but is worried about tax implications.
would like some cash to pay some bills, hasn’t said how much. She will be running this by her accountant.
She likes the monthly income from the property but doesn’t want the hassle at her age.
Question a sale on CFD is considered a sale by the IRS and is a taxable event, yes?
I was thinking of making her 3 offers, she’s a friend of my wife, retired 72 y.o.
offer 1 L/O to me, she could get a mortgage for the cash she wants out then she wouldn’t have the capital gains of a sale plus be able to deduct the interest on the loan and still have the rental write off.
Offer 2 sell to me on CFD, she has the extra security of holding the deed, although I believe the tax implications are the same as an outright sale
Offer 3sell to me with owner finance that way she still gets the income that she likes.
Thanks in Advance for your input,