baldeagle 0 Report post Posted January 16, 2004 if a friend sells his business and puts money back into business will it prevent lender from enforcing the due on sale clause and wil it reduce his tax liabilty please respond to me atdan093045@yahoo.com thanks for your help Share this post Link to post Share on other sites
Dave T 0 Report post Posted January 16, 2004 I am not in a position to answer lender questions. Only the lender can tell you if they will accelerate the Due On Sale Clause and the circumstances under which they will do so. Although, if your friend is planning to sell his business his loan should be paid off anyway, so, your Due on Sale question probably does not apply to this situation. Section 1031 of the tax code might allow your friend to sell his business and replace it with another "like-kind" business -- thereby rolling the profits into another business tax free. Your friend needs to discuss this opportunity with a licensed tax specialist in his area. There are specific rules that control this transaction and professional assistance is required to get it right. Share this post Link to post Share on other sites