L. T. Portella wrote:

- quote -

Not so

If so, where should
- quote -

If Buyer gives Seller a note for the 350,000 including
interest at x% interest, then a payment schedule was
calculated. I hope. And I hope both have a copy of what's
called an amortization schedule.

This will break down how much of each payment is for
principal (goes on form 6252) and how much is interest
(schedule b.)

good luck!
and Cheer$$$,
Harlan Lunsford, EA n LA

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Assume that:
1. Mr. Seller sells a house to Mr. Buyer for $350,000.
2. Mr. Seller extends a mortgage to Mr Buyer for 30 years
and there is no down payment.
3. Mr. Seller had bought the house for $50,000 many years ago

Questions
1. The $300,000. should be recognized over the 30 years
time? That is $10,000 every year. If so, where should
this $10,000 be shown in the 1040?
2. Since there will be interest charged over the 30 years,
where in the 1040 should Mr. Seller show this interest
income?

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