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    pianoguy08's Avatar
    pianoguy08 Posts: 1, Reputation: 1
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    #1

    Sep 12, 2008, 11:38 AM
    Land contract - tax consequences
    I'm considering selling my house on a land contract. The terms state that they will pay 8% down (the realtor takes 6%) and monthly payments at the rate of 8% on the principal. They will take care of taxes and insurance.

    What are the tax consequences for me? Will this be treated as income, or as sale of a home (I have just bought a more expensive house).

    Eric in Dayton
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Sep 12, 2008, 11:49 AM
    This sounds like it's a sale with you holding a mortgage. So the tax consequences would be the same as you selling the home, but you will need to declare the interest as income each year.
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