Can you give be a brief overview on what I need to claim as income and can write off as deductions when selling on contract?
Do you have a CPA file your taxes? Also, do you set up a separate business or just file under your own social security number?
Thanks again,
Lora

ScottGem

Since there can be significant liability here, I would set up a corporation or LLC to hold the contract. That would then mean hiring an accountant to deal with tax issues.

Fr_Chuck

vI am a firm beleiver in a seperate LLC if you only have a couple, if you have alot a coporation is a good idea.

If you are new to doing this yes hire a good tax preparer, there are alot of really great money losses available, esp if they don't stay in the house and you have to take it back.

Cvillecpm

By selling RE on a contract, you only pay taxes on the income in the year you receive it. You hold LEGAL title and the purchaser hold EQUITABLE title.

You should find a bank/attorney or escrow/title company to administer payments - accept payments from the purchaser and make any payments on any underlying obligations like mortgage, taxes, insurance.