Check with a tax professional. I'm not one, so this isn't tax advice.

Often, the profit would be classified as "ordinary income" rather than "capital gains" and taxed at a higher rate. There are plenty of legal ways around that. But that's really up to the seller.

Your concern (though you didn't ask) deals with seasoning. It might be difficult or impossible for you to get a mortgage on a home that was just sold/bought recently--for instance, within the previous 90 days. Again, there are plenty of legal and ethical ways to address this situation. But you need to do them before the transaction, not after.

Again, check with a tax professional.

Hi Darlene--there are lots of different scenarios that may come into play. For instance , the type of financing the buyer used may effect his/her ability to sell the home immediately. Give me a call if you'd like more details.

He should consult with his CPA.