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Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 1493
Experience:  Over 22 years of tax preparation experience.
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After retiring, I bought a home in the Ocala area. This was

Customer Question

After retiring, I bought a home in the Ocala area. This was not the right move and my spouse wanted to go back to work. We owned the house outright and sold it after only 10 months living there. After cost to improve the house and to pay closing costs to buy and costs to sell including realtor costs, we made a profit of about 22,000. We are also holding the mortgage for the buyer and collecting a mortgage. We have not received our total money for the sale of the house. We gave the buyers a 2 year balloon note to pay off the full mortgage. We received 30,000 down which became a little less than 8,000 after closing fees that we incurred when buying and selling and the cost to the realtor. What are the rules on my income tax for the profit?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  Arthur Rubin replied 1 year ago.

Thank you for using Just Answer.

This is called an "installment sale". Please look at form 6252 and the instructions. I can go over details with you on how to fill out the form, but it would be a good idea for you to look at the form first.

Customer: replied 1 year ago.
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