Does TP report when contract is made, or when contract is over. 1099s usually aren't issued until recorded, and contract for deeds are just that, contracts. But, when do you report?
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Contracts
Based on limited facts you presented contracts are generally reported when all legal elements of the contract have been executed and completed. This is generaly at closing and reported based on closing date. -
If payments are received for 10 years, do you just keep track of that money and then report at the end, or does a contract for deed become an installment sale?
How is a rent to own contract handled?Comment
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Installment Sale
Your facts presented sound like an installment sale unless you have made a timely election out of it....Tax Book has good info on it.Comment
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I agree. And you report the principal as it is received (in the tax year it is received) on Form 6252. The interest is reported on Sche B.Comment
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