Hans welcomes tax strategist and seasoned investor Bill Walston to dive into the tax implications of creative finance deals. Bill, a former CPA with a master’s in tax law, shares his expertise on structuring subject-to, seller financing, lease options, and contract-for-deed deals to minimize tax liability. Key takeaways include: avoiding dealer status to escape high ordinary income and self-employment taxes (15.3% on profits); leveraging installment sales for contract-for-deed and seller financing to spread capital gains and depreciation recapture over time; and using lease options to reinforce investor status, reducing tax risks. Bill’s acquisition hierarchy prioritizes subject-to for tax benefits like depreciation and interest deductions, followed by wrap mortgages, contract-for-deed, and lease options. For disposition, he flips the order, favoring lease options for flexibility and investor intent, then contract-for-deed for installment sale benefits, and cash sales as a last resort due to immediate tax hits.

A must-listen for tax-smart investing!

Watch at YouTube.com/Sub2Investor and learn more at https://www.sub2investor.com/!

If you enjoyed this podcast & want more episodes, PLEASE LEAVE A 5-STAR REVIEW. Thanks & peace!