Capital Gains Tax

brojitsu00 — Tue, 24 Feb 2026 08:11:45 GMT

My brother passed a couple years ago and his house (Located in Jacksonville, Florida) was finally cleared and placed in my name a couple months back and I have put it on the market to sell. I know that I am only responsible for the value of the house when it was placed in my name and the value when I sell it, but I have been recently offered an alternate form of buyer payment that involves a down payment and a short term mortgage of 5 years. Apparently this is a common investment purchase method, but I am unfamiliar with it. I was considering setting interest as a means to offset the capital gains tax I will have to pay once the house is completely paid off in five years but I am unfamiliar with how this kind of loan would affect the tax. Am I responsible for the value of the house when it finally clears payment or will I be responsible for the original payment amount/value difference?

Re: Capital Gains Tax

Anonymous_ — Thu, 02 Nov 2023 16:49:20 GMT

You absolute need to consult with a local tax professional and legal counsel before proceeding.

See https://www.avvo.com/

The transaction you are considering is an installment sale and you can read more about such transactions at the IRS web site below.

https://www.irs.gov/taxtopics/tc705

topic Capital Gains Tax in Get your taxes done using TurboTax

Capital Gains Tax

Re: Capital Gains Tax