What tax forms should I fill out for a cash out real estate deal?
I am selling my house worth 245k for 187k . The buyer wants to "cash out" for 50k. If he gets a loan for 237k he wants me to write him a check for 50k at closing. I take 187 (minus 157 for mortage) and he gets 50k. How do I report this so that I don't look like I profited over 80k? I will only make 30k on the deal.
Answer:
Captial Gains Tax (schuedule D), I believe. Consult a CPA or EA
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