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    baronvonhamm's Avatar
    baronvonhamm Posts: 1, Reputation: 1
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    #1

    Jul 22, 2007, 06:42 PM
    Tax implications of a contract for deed for buyer and seller
    Hello. I am looking to purchase a primary residence on a contract for deed basis. My understanding is that I, as the purchaser, would be able to write off the interest I pay on my yearly taxes. My question is, can the seller continue to write off the interest he is paying on the mortgage he currently has that he would be carrying while we are paying the contract? (it is not free and clear) I am looking for reasons this is a good arrangement for the seller, as I can clearly see the advantages for myself.
    Thanks a lot!
    janeontheplain's Avatar
    janeontheplain Posts: 19, Reputation: 2
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    #2

    Jan 21, 2011, 06:26 AM
    From what I understand, and I am not an expert. The owner can use the interest he pays for a deduction as can you because they are separate loans, but the owner also has to claim the interest you pay as income (I see this is an old post but perhaps someone else will find this helpful... )
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