paying taxes on completed deals - Posted by Robin(AZ)
Posted by Robin(AZ) on July 07, 2002 at 16:08:58:
I searched the archives, but pulled up too much. My understanding was that, when you sell a MH, you pay taxes on the entire profit in the yearthat the sale was made-- NOT on the payments received each year, for the life of the loan.
I met with an accountant on Friday, and he said that was wrong. That the IRS will consider 50% of the down as income, 50% as return on capital investment, and 50% of manthly principal payment plus interst payments as income, and the remaining 50% as return of capital invested.
When I told him what I understood to be the tax implications of Lonnie deals, he flat out said I was wrong. I’d be SUPER happy to hear I am wrong, but I trust you guys more than someone who ISN’T doing Lonnie deals!!!
If anyone could take the time to answer, or in the alternative, direct me to a post in the archives, I’d be grateful.