Traditional cash sale
- Gross proceeds
- $1,300,000
- Tax due in Year 1
- --$273,700
- You keep
- $1,026,300
Free tool
See what seller financing actually nets you.
A cash sale hands you a check today. Seller financing hands you a check today plus monthly income for years plus a smaller tax bill in Year 1. Adjust the deal below and watch the math.
Amortization schedule
36 monthly payments of $31,711
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Total | $1,141,588 | $1,027,000 | $114,588 | -- |
Year 1 tax impact See how much you keep out of the IRS's hands in Year 1.
$
Taxable gain: $1,150,000
No state income tax
Seller financing
- Gross proceeds (incl. interest)
- $1,414,588
- Year 1 tax (only on cash received)
- --$57,477
- You keep over the term
- $1,140,888
$216,223
deferred out of Year 1
Same total tax. Different timing. Seller financing lets you pay tax only on the cash that actually arrives in your bank account each year, instead of writing one giant check next April.
Michael Steinberg · HedgeStone Business Advisors
Seller financing is often the best structure for first-time buyers. The seller's willingness to carry a note is a strong signal of confidence in the business. If a seller refuses to finance even a small portion -- ask yourself why.
Buyers love it because it lowers their cash-in. Sellers love it because the IRS waits its turn. The right structure beats the right price almost every time.
Ready to model your actual deal?
Bring us your numbers. We'll structure a sale that gets you to the closing table -- and to a bigger total payday.
Talk to HedgeStone