Profile picture for user0830504

if you sell a house on a contract for deed do you have to charge interest?

I want to sell my house to my kids I will not make a profit, they will make
monthly payments to me because their credit is not good enough to
get a mortgage.  I will not be selling the house for more than I paid for it.
I was told I had to charge them interest and report the whole payment
as income.
  • August 23 2012 - Battle Creek
  • 0Yes

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Answers (3)

Profile picture for Ofe Polack
For tax matters please contact your attorney and for the terms of the contract have a word with a real estate attorney.
  • August 24 2012
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Profile picture for wetdawgs
Please talk to your tax accountant (or find a good tax accountant).  In general in situations like this, if the parent is providing below market rates there are tax consequences.   Your tax advisor can provide the details for your specific situation.

  • August 23 2012
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Real Estate agents cannot advise you on taxes matters, you should speak with your tax guy or CPA to determine the tax consequences of your proposed sale.

  • August 23 2012
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