Tax Benefits to Seller of Seller Finance?

by a searcher

2 years ago

When communicating with a seller about Seller finance how do you present it in a positive light and help them realize the benefits to them. 

What are the main benefits to the seller of seller finance and what are the main tax benefits of doing so?

2 likes
169 views
7 comments

searcher from Ferris State University

no/less capital gains tax and they earn some/all of the interest instead of the bank

2 years ago | like reply | 0 likes

professional from New York University

One major advantage from a tax perspective can be the deferral of recognition of income (generally no tax until the income is received), especially if it's a smaller deal it may lower their overall tax burden. Otherwise, they could earn some interest on the note that could be more than what they would get otherwise.

2 years ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.