taxes in NC/buyer wanting money for repairs

[chatnc]

I have a rental home that I am wanting to selll. I have a buyer who wants to borrow 70,000.00 when I am only asking 60,000.00 for the home and me to refund them the difference so they can finish making repairs on the home. How will this effect me tax wise on the money in North Carolina? They are paying for all closing cost, termite inspection and appraisal since I am letting them have the house at such a low cost.

[TJ2007]

I guess as long as you are happy selling your home that far under it's value you should be fine as you should only have to pay taxes on your actual gain.

MAKE SURE THE SETTLEMENT STATEMENT HUD 1 (which is used for tax purposes) reflects the true amount you recieve.

[Alpharetta]

If the buyer is getting a loan, you better check to make sure that the lender will approve this.

[gjtrafl]

You will pay based on the sales price. If there is an agent involved, keep in mind the commission will be on a higher sales price unless otherwise agreed upon.