A contract for deed is another option for underwater real estate investors when trying to sell their homes. Q: I recently read your article “Not a lot of help forthcoming to underwater investors.” I want to add another option for …
Selling a rental property as an installment sale has property tax implications. Tax implications of selling a rental property. Successful rental property could sell for a profit, but should homeowner continue to rent or sell the rental property? Homeowner considered if they should sell their rental property or continue to rent the rental property, reader asks why not sell rental property with an installment sale? Selling a rental property as an installment sale has property tax implications.
Selling your home on an installment sale or a rent-to-own home sale. Homeowners sell home with installment sale by transferring home title to buyer or entering into an installment sale for deed for the home. Installment loan, owner financing and rent-to-own issues arise when homeowners sell home with installment sale. Consult with a tax expert when selling home with installment sale or installment loan.
Land Contract Tax Consequences Don’t Allow You To Qualify For $8000 First-Time Home Buyer Tax Credit
A land contract is known in some parts of the country as “purchases installment contracts for deed” or “contracts for deed.” Land contract tax consequences don’t allow you to qualify for the first time home buyer tax credit. Even if you received title on your home this year, if you entered into the land contract years ago, the IRS views you as the owner since you entered into the land contract.
Land contract — also known as installment contracts for deed — are complicated documents. If you are not careful, you could end up in a mess. Some issues that can lead to problems in a land contract are title issues, including unpaid real estate and property taxes. But unpaid taxes could be the lesser of some of the title problems you can encounter using a land contract. This reader found unpaid property taxes from years earlier about a year after entering into the land contract.
A home buyer purchased a home using an installment contract for deed. She paid an escrow company, which then paid out her mortgage, taxes, insurance and homeowner association dues – or so she thought. Now she finds out that the escrow company/mortgage broker hasn’t been making any payments, and the house could be foreclosed upon. Is she a victim of mortgage fraud? What should she do now?