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Selling a second property that has been payed off

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lilbo1984

Junior Member
When you sell a second property on a land contract, Do you have to pay selling taxes, does this effect your income tax return? If you do have to pay taxes on it, and later on the buyer pulls out of the deal , and you sell it again on a land contract do you then have to pay all those taxes again? This property is in Michigan.

Thanks for your time and advice.
 


HomeGuru

Senior Member
When you sell a second property on a land contract, Do you have to pay selling taxes, does this effect your income tax return?

**A: you pay taxes on the interest income.


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If you do have to pay taxes on it, and later on the buyer pulls out of the deal , and you sell it again on a land contract do you then have to pay all those taxes again? This property is in Michigan.

Thanks for your time and advice.
**A: I think you are asking about capital gains tax which only apply when the land contract Buyer actually pays you off.
 

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