bub
Level 1
03-10-2021
11:54 AM
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I HAVE A CLIENT WHO SOLD THEIR PERSONAL HOUSE FOR $122,000 ON A LAND CONTRACT. DO THEY HAVE TO PAY TAXES ON PRINCIPAL AND INTEREST OR JUST THE INTEREST SINCE IT IS THEIR PERSONAL HOME THEY SOLD?
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qbteachmt
Level 15
03-10-2021
12:25 PM
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You're thinking of the Banking, not the sale.
The Sale is evaluated for if there is reportable gain. Your taxpayer has an installment sale. Interest earned is always taxable.
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bub
Level 1
03-10-2021
07:55 PM
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Since the Installment sale is for a personal home which is below the minimum requirement for taxes then is the only thing reportable on the installment sale the interest earned?
sjrcpa
Level 15
03-10-2021
08:05 PM
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Yes
Ex-AllStar
