Client sold a house on a lease/purchase agreement. Got 15,000 down and then is going to receive $1000 a month. $800 is rent, $200 goes towards principal.
Now client paid mortgage interest, property taxes, insurance. Since they will be getting rental payments, would these items go on Schedule E? Or expenses of sale on Form 6252. I assume that since this is a lease/purchase that this is still a installment sale.
This is the first lease/purchase I have done.
Thank you for any help
Now client paid mortgage interest, property taxes, insurance. Since they will be getting rental payments, would these items go on Schedule E? Or expenses of sale on Form 6252. I assume that since this is a lease/purchase that this is still a installment sale.
This is the first lease/purchase I have done.
Thank you for any help