Posted by JHyre in Ohio on December 16, 2003 at 06:45:33:
Basis is what you had into the property…purchase, improvements, less any depreciation deductions taken. Sales price is note face value plus down payment. Sales price less basis equals your gain. Interest that you receive and a portion of the principal on the note is taxed each year based on the size of the gain.
John Hyre
Land Contract Tax Liability - Posted by Adam Campbell
Posted by Adam Campbell on December 12, 2003 at 14:51:54:
How do I figure my tax basis if I’m selling on land contract? Is it Total Anual Amount Received less my Anual Interest Payments? If this is true, after running the numbers, it appears that I’m not going to profit too much. Is this because I am also on the front end of my existing loan?