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

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.

VI am a firm beleiver in a separate LLC if you only have a couple, if you have a lot a coporation is a good idea.

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

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.