Owner Financing Pitfalls In An LLC
We are selling property (single home), owned free and clear, that exists in an LLC (7 members). Rather than listing it with an agent, we have come across buyers who are interested in buying it directly from us with the following terms.
$190,000 purchase price
$800/mo for 3 or 4 years with a
baloon payment at the end.
How legitimate/safe is this type of transaction?
How is the capital gains tax calculated in an LLC on the income earned over the 3-4 years and when the baloon payment is received?
Would seem that installment sales rules would apply. seek a competent tax professional
My firm can help anyone who would like to sell their Seller or Owner Financed properties both residential or Commercial. We can do one or a whole portfolio. For help call Mark at 678-313-3305 or send details to **Please See My Profile**