Chapter 3: Tax Deferral Benefits
Selling a property the traditional way can lead to a large one-time capital gains tax. But with seller financing, your gains are spread out over time, meaning you can defer — and potentially reduce — your overall tax burden.
This is known as an installment sale under IRS rules. Instead of paying taxes on the full gain in year one, you pay as the payments come in, giving more time for you and a tax professional to structure the best possible way to suit long-term goals as well.
This strategy is especially beneficial for high-value properties or owners in high tax brackets. It allows you to keep more of your money working for you, year after year.
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