I inherited my Dads house and I am selling it on a land contract. It is being sold lower then turned in to court house records. Do I turn in the interest being made on the house.Still in my name tntil paid for.

I am selling a inherited home by land contract. Do I pay taxes on interest. No gain on value of house

Not until you have recovered all of your basis in the property.

Thank you for your fast reply. Concerning your answer the total of the interest when home is paid for will still be below what I filed at court house. Does this still require me to pay tax on interest as you said when I get total amount. Thank you

I am so sorry but I neglected to state this is concerning filing it on income tax

First, the proper way to add to your questions is using the Answer options below, please don't start new questions. I've merged your threads for you.

This depends on how you have worded your contract. Normally, in a land sales contract, the buyer is paying a monthly amount that is NOT considered principal and interest. So the payments are not income. However, if you sold using a promissory note, then the interest could be considered income for you.

I strongly suggest you consult a tax professional for this year's return.

Thank You I'm sorry about the confusion.. Your answer helped me

Actually looking at my answer I misspoke. The payments made ARE income, because they are contractual payments. Pretty much the same as rent.

I'm not sure, and would suggest a tax pro to answer, what happens when the contract is completed and the property transferred.