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How To Claim Income On Land Contract?

Having a dispute with a tenant or landlord? Rental Law discussion

How To Claim Income On Land Contract?

Postby iomar » Wed Nov 30, 2016 2:13 am

s About Taxes)/How to claim income on land contract? Advertisement Expert: Carole Dunton - 1/18/2009 Carole,  I have sold my property in Ohio on a Land Contract.  Payments monthly over 4 years with the balance due at the end of the 4 years.  I am 55 years old and have been told, hearsay, that I can sell 1 property and not be taxed on the income.  If not, then do I claim the income like rental for 4 years and then the balance is the sale of the property? Or what?  I have since moved to Pa. so it's difficult to find someone in Pa to discuss matters about Ohio.  Any information to shed some light would be greatly appreciated or point me in the right direction please.  Thankyou.

Sincerely, Nan
iomar
 
Posts: 43
Joined: Fri Apr 01, 2011 8:20 pm

How To Claim Income On Land Contract?

Postby Roldan » Wed Nov 30, 2016 11:54 pm

s About Taxes)/How to claim income on land contract? Advertisement Expert: Carole Dunton - 1/18/2009 Carole,  I have sold my property in Ohio on a Land Contract.  Payments monthly over 4 years with the balance due at the end of the 4 years.  I am 55 years old and have been told, hearsay, that I can sell 1 property and not be taxed on the income.  If not, then do I claim the income like rental for 4 years and then the balance is the sale of the property? Or what?  I have since moved to Pa. so it's difficult to find someone in Pa to discuss matters about Ohio.  Any information to shed some light would be greatly appreciated or point me in the right direction please.  Thankyou.

Sincerely, Nan
Roldan
 
Posts: 44
Joined: Sat Mar 01, 2014 5:40 pm

How To Claim Income On Land Contract?

Postby Townly » Sun Dec 04, 2016 12:52 am

Hi,

You can exclude up to $250,000 gain on the sale of your main home if you owned and lived in it for 2 years during the 5 years preceding the date of sale.

Since you are being paid over time, you should have reported the sale as an installment sale.  The interest you are receiving is taxable even if you can exclude the gain.

Go to a tax professional who can help you file the correct papers and report the taxable income.  One of the national chains - such as H&R Block - would have someone who can help you.

Regards,

Carole
Townly
 
Posts: 36
Joined: Sun Jan 05, 2014 8:16 pm


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