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Do I have to report mortgage payments from the buyer in a contract sale?

Posted on: 13th Feb, 2011 05:32 pm
I have a buyer that has signed a contract to buy, but does not qualify for financing, so I hold the note...they make the payment directly to the bank. I do not see or handle any money. For all practicle purposes, they own the house, but the mortgage is mine.

What are my tax liabilities?
Welcome djollay,

If the mortgage is in your name, then you will be able to claim the taxes in your tax filing. But it will be better if you could contact a tax adviser and take his opinion in this regard.
Posted on: 13th Feb, 2011 06:46 pm
Do I have to report the mortgage payments made by the buyer as income on my tax return?
Posted on: 13th Feb, 2011 07:26 pm
Hi Guest,

You may have to report it as your income. However, as I have suggested earlier, have a word with a tax adviser and take his/her advice in this regard.
Posted on: 13th Feb, 2011 09:15 pm
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