2007-07-03 04:23:59 · 4 answers · asked by TommyDean 1 in Business & Finance ➔ Taxes ➔ United States
You must report the sale in the year it is completed and the income from the installment payments each year they are made. This is so even if there is no profit. If you do not the IRS will receive a 1099S reporting the sale and attempt to tax you on the full price of the sale.
2007-07-03 04:56:14 · answer #1 · answered by ? 6 · 0⤊ 0⤋
If you sell and have no profit then you would have a loss. The loss is reported in the year of sale if it is a business (rental ) property. There is no such thing as an installment loss.
You would still report the interest received each year
2007-07-03 12:41:20 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
Yes. Divesting yourself of an investment and losing profit may help your tax standing. However, be sure to check with a Tax professional, as in some cases, if you sell the house in a market where the house is actually worth more, you can be penalized for selling in such a way as to avoid taxation.
2007-07-03 11:35:00 · answer #3 · answered by Marvinator 7 · 0⤊ 1⤋
Yes
Part of each payment is considered interest and is subject to income tax.
2007-07-03 11:34:57 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋