I sold my condo to an investor who is renting it full time. I sold it under a promissory note where I get paid monthly interest only payments for 3 years with a lump sum payment after 3 years. I assume have to pay tax on the income from the promissory note, but since the borrower is renting the property with no intention to live there, he is deducting the interest as a business loan. Does this change anything on my end being the lender? Or do I just report all the interest income on my tax return as usual.
