Selling home - Owner Financing

[laurie....@adelphia.net]

If I sell my home and offer owner financing, how does this intermingle with
capital gains issues?

thanks

chaz

[Arthur Kamlet]

In article <KMeRg.21570$eW5....@bignews5.bellsouth.net>,

<laurie....@adelphia.net> wrote:
>If I sell my home and offer owner financing, how does this intermingle with
>capital gains issues?

This is known as an installment sale.

The Sec 121 $250,000/500,000 exclusion applies on sales price.

If there is a taxable gain agter accounting for exclusion,
the gain will be listed on schedule D each year as the income
comes in.

The interest you receive will be listed on Form 6252 each year
and then to Schedule B, where it will be taxed as received.

--

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

[Paul Thomas]

<laurie....@adelphia.net> wrote

> If I sell my home and offer owner financing, how does this intermingle
> with capital gains issues?

With the exception for the interest, which is always taxable income to you
(and a deduction to the payer), any gains would be exempt if they were
exempt under Section 121 in the first place. And it the gains were taxable
to you (because they weren't exempt under 121), then they are taxed as
received following the installment income rules. See Form 6252 and the
related instructions and maybe check out Publication 537 as well.

--
Paul A. Thomas, CPA
Athens, Georgia

[chaz]

"Arthur Kamlet" <kam...@panix.com> wrote in message
news:ef4a9m$469$1...@reader1.panix.com...

Does this mean if I sell the house for 100,000 and I accept payments over
the next 10 years at 8% I am only paying tax on the interest and the 100,000
is covered under capital gains exclusions provided I meet the requirements?

[Arthur Kamlet]

In article <6blRg.21899$eW5....@bignews5.bellsouth.net>,

Correct. File form 6252.