SALE OF PERSONAL HOME ON LAND CONTRACT

bub · ‎03-10-2021

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?

qbteachmt · ‎03-10-2021

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 · ‎03-10-2021

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 · ‎03-10-2021

Yes

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SALE OF PERSONAL HOME ON LAND CONTRACT

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