Q. What Are The Tax Implications Of Selling My Note?

We don’t offer tax advice and you’ll need to confirm with your CPA. We’ve found that in most cases, if a seller claimed the installment sale tax method back when they created the note and if they are selling it now for more than their basis, then they will need to pay tax on any capital gains. Since a note could also be sold at a capital loss, it may actually reduce taxes owed come April 15th. Make sure you chat with your tax professional to find out exactly how selling your note will impact your taxes.