The gain is deferred, and you save on tax.

First, forget about the flip, considering seller finance issue, it is an installment sale. The gains are deferred.

http://www.ehow.com/list_6163363_tax-advantages-seller_financed-mortgage.html

Second, you'll pay CGT instead of regular income tax for most of the sale.

If you bought the house 10 years ago, all gains are capital gain. But if your flip is less than 12 months, the gains would have been treated as normal income at a higher tax rate. But with your installment sale, most of the gains will be collected beyond 12 months and therefore treated as capital gain at a lower tax rate.

Talk to an accountant.

所有跟帖： 

• 这么说flip房子交高税率啊，真不划算。 -big-guy- ♂ (0 bytes) () 11/13/2014 postreply 13:23:46

• Well, as long as you make money. -lexm5- ♂ (608 bytes) () 11/13/2014 postreply 13:31:00

• thanks -big-guy- ♂ (0 bytes) () 11/13/2014 postreply 14:35:33