That has absolutely nothing to do with what I asked “however it was a real deal you did” or what I thought we were talking about other than the fact that at some point you used a land trust into the deal.
This is a property that you yourself owned for six years! I thought we were discussing short term investments or even flips using trusts or sub2s. Isn’t that what you do? I know that is what John does.
Regardless of what method you used to finance the home you were talking about in your example, you would pay no capital gains tax reagardless of your method because of you owning it for more than two years.
That is like me saying that I purchased my current home from Wells Fargo with conventional financing I have been there for two years and I sold it. There you go no capital gains. Come on man.
My example was:
“I create a land trust or sub2 agreement with the seller in January of 2006. I then find a buyer/ RB / lessee whatever you want to call it for a term of let’s say two years in February of 2006. From what I understand, you will have to pay taxes based on the amount of the agreement. But, if you don’t receive those gains until the buyer gets financing of their own doesn’t this create problems? This is really the only thing left that is hanging me up in the whole process as paying 30% income tax on these gains is a huge thing to take into consideration for planning.”
Surely you have a relevant example of what we are talking about in all of the deals you have done?