Phil RisherPhlash Consulting · No. 1 Digital Marketing Consulting Company For $1m-10m Home Service Businesses 🚀

most home service owners build a business but never build an exit #shorts

20 Jul 2026 · 1 min

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0:52

In this short, the speaker explains how an older property owner who bought a building decades ago faces a large long‑term capital gains tax when selling it at a much higher price. By using seller financing—receiving a down‑payment and installment payments over time—the owner can spread the taxable gain across multiple years, reducing the immediate tax burden. The example shows a $900,000 gain being taxed all at once versus being taxed on a $130,000 portion in the first year and the remaining payments in subsequent years. The speaker emphasizes that this approach slows down tax liability, potentially lowers total tax paid, and advises consulting an accountant for proper structuring.

Chapters

If an older owner buys a building, say they buy it in 1980 for $100,000, fast forward to 2026, it's worth $1 million. Well, they had a $900,000 gain. And if they go sell the building, they're gonna have to pay long-term capital gains tax on that gain. And that's all at one time at one year. Make sure you talk to an accountant. If we sell or finance it, well, they get less money now. Let's say we do that example of 10%. So it's $1 million. We're going to give them $100,000 down. Well, they're only going to get taxed long-term capital gains that year for that $100,000. So instead of getting taxed on $900,000 in one chunk, they're getting taxed on $100,000 plus all the payments you make that year. Let's say with the payments, it's like $130,000 or something like that. Instead of getting taxed at $900,000, they're getting taxed at $130,000, and then they're spreading out the cash flow. And then the next year, they're not going to have a big $100,000 chunk. They're just going to have all the payments you made, and they're going to get taxed much slower. So it's slowing down the tax rate and mitigating it. And I think technically you'd be paying less because instead of one big massive chunk, you're paying it in smaller chunks over time.