Thank you for your response, but I'm sorry, that doesn't answer my question. I do not use Schedule E as that's for rentals. This is an installment sale. Form 6252, Line 5 is the selling price I sold the property for and line 8 is my cost and other expenses of the sale.
My question is only about line 21, form 6252. My installment sale buyer pays me a payment that consists of PITI (Principal, Interest, Taxes, Insurance) and late fees each month. It is clear that all the principal I received for a given year goes on line 21. It is also clear that interest is not included on line 21. So of my payments received, that leaves taxes, insurance, and late fees.
Question:
should these amounts be included on line 21?
Incidentally, I pay the taxes and insurance annually for the buyers on the installment sale. Almost like an escrow account but I do not have it set up that way.
