Capital Gains Tax
Okay, I have a seller who has about $100k of equity, he's had offers for lease/option and rent to own from buyers in the area, but was worried about capital gains tax if he doesn't sell it outright. I of course wanted to do subject to, but he doesn't even have a mortgage, it's paid off, and he's not that motivated since he has no payment and already has another home built. He's also an economics professor, lol. But I wanted to give him a few options to think about in case he gets to the point where he just wants to give it over to me. I guess he can't get around capital gains if I offered a lease option for 4 years or something, but what about if he gave me seller financing? Does that get around capital gains, is it counted right away, or when I refinance or double close with my tenant/buyer?
We have great rapport, so I want to at least put something on the table in case he doesn't find someone else! TIA!
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