How to avoid taxes in sale of primary residency using installments
We are considering selling our primary residence on an installment plan - so effectively financing a loan for the buyer. I've seen about reporting using an installment plan, but we would like to avoid paying taxes as if the home was an investment. We are concerned that the loan will extend past the 5 year test for residency to avoid paying taxes (loan is for 6 years). Is there a way to avoid taxes in this situation the same way as if the home had been sold for a lump sum?
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