AboutRichard Fritzler Expertise I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.
Experience Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at www.owelesstax.com
Organizations National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute
Publications Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
Googlegroups/Successfulbusiness
I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.
Question We plan to sell our rental house in Texas. We are unsure whether to carry the loan ourselves or not. We have heard opposing views as to whether carrying the loan ourselves will eliminate capitol gains taxes. Can you tell us? Thank you Rita Michna
Answer Carrying the loan will not "Eliminate" the tax. It will spread the income over a few years, so that you can pay the taxes over an extended period of time.
If you offer to carry the loan you will have a larger pool of possible buyers. Many people wanting to buy a house cannot get conventional financing. Their credit may be low, they can't demonstrate enough verifiable income to make the house payment, or many other reasons. If you are willing to take the risk, then they become potential buyers. This could result in Selling faster, or at a higher price. A higher price, because someone that cannot qualify conventionally, may be willing to pay a premium to have you take the risk. It is a risk. They may not pay, they may trash the house before moving out, or they may spend their money keeping you from foreclosing on the house.
Ask these questions. Can you afford to take back the house, if they don't pay? Are you getting a large enough down payment that if you have to take it back, you can afford to rehab it? Are you willing to go through the hassle, if you can make some money? IF you answer no to any of these questions, then I would suggest not carrying the paper.
