How to handle (legally) taxes when you sell a home for cash

How to handle (legally) taxes when you sell a home for cash Key point up front Selling for cash does not change your tax obligations. A cash sale is taxed the same as a financed sale — you still must report the gain, and there are legitimate strategies to exclude, reduce, or defer tax. (See IRS Publication 523 and Form 1099-S). (IRS)