Reporting Interest for Property Sold on Contract

VickiB
VickiB Member Posts: 2 Newcomer
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We sold our Florida winter home (2nd home) last March on Contract. Do I prepare a form for the buyers showing the interest they have paid to us? And is that the 1099-R form? Is there a good resource to guide me on how to complete the necessary forms on-line?

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Answers

  • KFine3325
    KFine3325 FreeTaxUSA Agent Posts: 48

    Hi VickiB!

    Tax law doesn't require that you issue any form to the buyer reporting the interest they paid in the installment sale. The installment sale is reported on your return on Form 6252. You can find more information here regarding reporting an installment sale: https://www.irs.gov/publications/p537#en_US_2023_publink100043541

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