Avoid Capital Gains Pressure in a Single Tax Year
Installment timing can reduce the pressure of recognizing all gain in one year.
Many Florida sellers have large equity gains. Seller financing may allow gain recognition over time instead of one large lump-sum event, depending on your tax profile.
Why Sellers Choose This
- Potential to spread recognized gain across multiple years instead of one tax year.
- May keep annual income in a lower bracket versus a full cash exit.
- Can pair immediate down payment cash with long-term monthly payments.
- Lets you design term length around tax timing and liquidity goals.
How to Structure It
- 1Set sale price, down payment, and interest rate with the buyer.
- 2Structure balloon or no-balloon payoff based on your timeline preference.
- 3Receive principal and interest monthly under a secured recorded note.
- 4Coordinate final structure with your CPA before signing closing documents.
SEO Search Themes
This guide targets the exact phrases motivated sellers commonly search before deciding to carry a note.
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Common Questions
Is seller financing a guaranteed tax reduction?
No. Tax outcome depends on basis, depreciation history, exclusions, and income. Seller financing is a timing strategy, not a universal tax result.
Can I still get meaningful cash at closing?
Yes. You can negotiate down payment size, then receive the remaining principal and interest over time.
Do I need a balloon term to use this approach?
No. You can use balloon or fully amortized structures. The right option depends on your cash flow and liquidity goals.