Installment Sale of Main Home

1 Reply

Hello,

I sold my main home last year with owner financing, and am coming across competing tax laws between the Installment Sale side and the Sale of Main Home side.  We qualify for exempting the gains and the entire purchase amount is below the $500,000 covered (lower than $250,000 too).  We are owner financing this on a 30-year note, though the buyer is paying extra each month to effectively make it a 10-year note.

Do I/How do I report this on my taxes?

Thanks for your time!

Originally posted by @Brandon Folts :

Hello,

I sold my main home last year with owner financing, and am coming across competing tax laws between the Installment Sale side and the Sale of Main Home side.  We qualify for exempting the gains and the entire purchase amount is below the $500,000 covered (lower than $250,000 too).  We are owner financing this on a 30-year note, though the buyer is paying extra each month to effectively make it a 10-year note.

Do I/How do I report this on my taxes?

Thanks for your time!

 You will report the sale in your tax return  but not recognize the gain. 

Remember, you have to recognize the interest income. There is no exclusion on the Interest piece.