Re: Tax question on Land Contract - Posted by Dave T
Posted by Dave T on February 02, 2001 at 24:19:40:
Better consult a tax professional right away. You have already missed the deadline for providing your buyer a 1098. Your deadline for filing that same 1098 with the IRS is still ahead of you, February 28.
You should also check with the tax professional on the correct tax treatment for the property you sold. This sale (from the sketchy information you gave) does not appear to qualify for installment sale tax treatment. Instead, all of the profit on the sale of the property may be taxable in full as ordinary income. Even though you sold the property on an installment method, the installment sale tax treatment might not apply to your transaction.