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AR15.COM
1/25/2012 3:27:59 PM EDT
If I sell my primary residence.  I don't pay taxes on the profit (joint under 500k)

But if i owner finance and the buyer pays me monthly mortgage, does that count as taxable income at my current tax bracket?
1/25/2012 3:59:23 PM EDT
[#1]
I believe the interest you charge on the mortgage would be income, and the gain gets spread over the lifetime of the payments. (Not a CPA)



Edited to add - you are in Texas, which is a non-recourse state. This has far greater risk if your buyer stops paying and you have to foreclose.

1/25/2012 4:01:52 PM EDT
[#2]
Capital gain: not taxed as long as you meet the residency requirements.
Interest revenue: taxed

*Also not a CPA
1/26/2012 7:25:26 AM EDT
[#3]
Thanks for the info.