Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Land contract sale (https://www.askmehelpdesk.com/showthread.php?t=607776)

  • Oct 29, 2011, 08:37 AM
    ariannen
    Land contract sale
    I am thinking of selling my house on land contract. I was wondering what the difference in tax paid on profit would be if any compared to an outright sale. Thanks for your advice
  • Oct 31, 2011, 01:07 PM
    ebaines
    In general there isn't much difference in what you report as a gain. In an installment sale such as this you report the sale as if the buyer has paid up front in full, even though they will be paying you over a number of years. It can get a little complicated if in a year or two the buyer defaults and you repossess, as you will then need to report a loss. The other major difference is you will need to report the interest that you receive from the buyer as income on Schedule B. You can get more details from here:
    Publication 537 (2010), Installment Sales

  • All times are GMT -7. The time now is 10:59 PM.