Capital Gains Tax
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?
