Apartment and Rental Properties - selling rental property

I am selling my rental property for $63,000 the buyer wants to do a 10% carry back he had the properyt appraised He is asking to show the property sell price to be $107,000 he is going to get a loan for 85% of this amount . the lender told him that they need an addendem that I aggree to a 10% carry back showing he will pay me in timely payments then after closing we aggree to tear up that aggrement. and pay me my 63,000 If i do this how does this affect me on capatial gains will I have to pay on the $ 107,000 or the $ 63,000 .

How many ways can you commit fraud?

I don't understand something. If there's an appraisal that says the house is worth $107K WHY ARE YOU SELLING IT FOR $63K?

The CLOSING AGENT (attorney/title company) is going to go by the SALES CONTRACT and instructions from the lender. If the contract says $63K that's what they're going to pay you. If the contract says $107K that's what theyr'e going to pay you.

When you file your taxes you'll need to show the HUD-1 (closing statement) for both the purchase and sale of the property. You'll owe Long Term (if you've owned it over a year) capital gains tax, plus DEPRECIATION RECAPTURE on the NET GAIN.

Tell us a bit more about what's going on here.

frank

"He will pay me in timely payments." The guy has already demonstrated how dishonest he is. Timely payments. Don't hold your breath. Get the $63K. Your business should be beyond reproach.

naw this guy has been watching way to much late night TV, just sell it yourself for 100k as the slum dude says. Heck it apprasied for 107k somebody is gonna get a deal!!!!