So, I did some light googling and got even more confused.
We might sell a house to the tenants living in it. We'd finance it for a year or two and then they'd pay a balloon (refi, presumably) for the rest of the money.
We're coming up on the end of our 2/5 capital gains exemption, though, so if we get the big chunk of cash 2 years down the road, is it subject to capital gains since it's out of the exemption time period? Or is the exemption based on the date of the sale?
Anyone done this? I'd prefer not to but the market is looking not great where we live and this is probably our best option to sell it (but that will depend a bit on the capital gains situation).
Thanks y'all!