Posted by Ernest Tew on August 27, 2003 at 17:26:58:
Rick, you may be getting yourself into a tax problem. When you are in the business of buying and selling mobile homes, you are a ‘dealer’ (for income tax purposes). Since dealers are not entitled to installment reporting, the entire gain is taxed in the year of sale. The fact that you didn’t receive the gain in cash doesn’t matter.
Before going further, I would strongly recommend that you get familiar with some of the strategies that allow us to minimize taxes. The tax problems and how to solve them is covered in my manual, “How To Get Rich Helping Others.”
If you need to discuss this, give me a call at (352) 475-1280. Mornings are best.