Asked in Real Estate Law and Tax Law for Florida

Q: Husband and I have IRS tax lien associated with our ss#s - we have a cash buyer for our home.

How will a cash sale be treated by the IRS

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1 Lawyer Answer
Richard Paul Zaretsky
Richard Paul Zaretsky
  • West Palm Beach, FL
  • Licensed in Florida

A: Unless you are providing financing by giving the buyer a mortgage, every sale is a "cash buyer" transaction because you are being paid the purchase price.

As for the IRS, if there is a tax lien on your name or names, the IRS must receive at least a portion of the proceeds. You don't say the amount of the lien nor the price the buyer is paying, nor whether you must pay off a mortgage, so giving you specific advice is impossible. The amount from the proceeds that must go to the IRS can be affected by various factors. It is best to see a real estate attorney to see what your NET proceeds will be, whether the lien of the IRS is still valid and has not expired, and to make such other determinations or inquiries as may be necessary. You should be using a real estate attorney for the sale anyway.

Barbara Billiot Stage agrees with this answer

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