What is the best way to buy a house for the seller for tax purposes?
If I understand your question correctly, you are considering making an offer on a house that would be tax attractive to a seller. Since single ($250,000 gain shelter) or couple ($500,000 gain shelter) owners can shelter a lot of gain there are not many major benefits from a tax standpoint in the majority of house sale transactions in our country. Most benefits are on a cash flow basis where you are saving the seller from paying closing costs or repairs. If you find a seller that is willing to provide seller financing, then you are providing an income stream rather than a lump sum payment and they have their previous home as security. If the loan was at 5% for example, that is a lot better than most owners could get guaranteed in today's investment market on their lump sum from a sale without taking on a lot more risk.
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