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Capital Gains on Seller Carry Back Financing

Updated: Feb 27, 2023

For Commercial Real Estate…

How does capital gains tax work with Seller carry back financing?

Part 1 of 2

You need to find out your basis in the property. Talk with your Accountant about this dollar amount. You will pay capital gains on the difference between the down payment amount and your basis, if the down payment is greater than your basis. If not, no capital gains tax. The amount you carry back will defer capital gains tax each year. Check back in a few days for an example.

*Always talk with your Accountant or Tax Advisor to determine if Seller Carry Back Financing is the right strategy for your goals.

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