I sold a house on land contract. Do i have to claim all the interest on my taxes. I also paid surveyor Etc.?

I paid to have the property surveyed, The insurance appraiser, Also the atty. fees to draw up the contract. Remodeled the bathroom. Can I also claim these expenses if I have to claim the interest?

I sold a house on land contract. Do i have to claim all the interest on my taxes. I also paid surveyor Etc.?
I going to make a short story long. You need to file a Form 6252 to record the installment sale and report the capital gain you actually received in payments for the year on a Schedule D and report the interest you recieved on a Schedule B. You also have to isssue the buyer a Form 1098 Mortgage interest for the interest that they have paid you for the year. By filing Form 6252 installment sale, this way you are only paying taxes on the capital gain that you actually receive every year instead of all at once, and you get to deduct a percentage of the payment you receive as return of your capital. As far as additions and so on, those are added to the basis on the cost of the house. If you believe this is a good solid land contract, I would go to a tax professional to set up the form 6252 for you so that you understand the percentage of capital gain vs return of capital that you claim every year. Once you understand the formula it's pretty easy. And as long as you keep a good amortization schedule the interest is easy. If you ever need to repossess this property it is a pain of paperwork to do. So do keep good records every year. But here is the IRS website that will fill in all the little details that you can read in the library at home when you have a little time. Long story short, you need to see a tax professional the first year of this sale.


http://www.irs.gov/publications/p537/ar0...