A sale in which the buyer makes a down payment and is scheduled to make a series of payments, over a period of time. An installment sale can offer certain tax advantages as you are taxed on the monies only as you receive them.
An installment sale can be very beneficial tax wise should an apartment owner want to retire from the apartment business and still have a monthly income which could be substantially more than what they currently receive.
Terms and Benefits
The Hanes Installment Sale is tailor made to your individual and financial needs. We are available to meet and/or work with your tax advisor to ensure all aspects of your financial & tax situations are addressed. There are several benefits that are made available through this process. Below is a list of standard terms and benefits:
The Security of an Installment Sale – Buyer Requirements
We are able to accomplish those benefits primarily through our strict buyer qualification process. The buyer qualification process includes some of the following:
Down Payment: Verification of liquid funds for down payment, plus 6 months principal and interest.
Net Worth: Minimum net worth equal to the purchase price exclusive of primary residence and auto’s.
Pre-Payment: Loan can not be pre-paid with out sellers’ prior written consent or buyer shall owe all the remaining interest due on the loan.
Tax Service: Provide seller with a type “B” tax service for the term of the loan.
Credit: Credit with out blemish from all 3 credit agencies (No foreclosures, bankruptcies, etc.).
Property Management: Previous property management experience is required.
Consult Your Tax Advisor
Should you choose to take advantage of an installment sale; Hanes always recommends that you seek counsel from a tax professional regarding any tax liabilities that may result. Hanes will work with and/or meet with your tax advisor to ensure that the installment sale is tailor made to your individual needs.
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