I sold a rental property to the person who had been renting it, since I purchased It. I sold the property to her and carried the mortgae at 0% interest. Needed to do it this way in order to charge fair value for the property, and make the payments work for what she could afford. The property had appreciated significantly. I fully understood the implications of the imputed interest I will have to pay. My question is, where on the tax form do I report it. Under installment sales, do I report is as interest received from the buyer, even though the buyer did not actually pay it? Or, is it reported elsewhere on the form? Thank you
