Our company sells residential rental property through seller financed mortgages on an installment sale basis. How would this be reported for tax purposes?

ANSWER

The BIDaWIZ Team's Answer:

Since this is residential rental property sold on an installment sale for the business, you can report the transaction on Form 6252 each year granted that the the property is sold at a gain. You will also report it on Form 4797 for the first year. In addition, you would report the interest income on Schedule B and issue a 1098 to the buyer each year for the interest paid.