That seems logical, but how about this: In the title company's closing settlement sheet we received, under "credits", there are these line items: Sale price of property; Prorations & Adjustments (which include: Taxes from closing date to end of year; sewer bill from closing date to end of year). So the total of the "Credit" column is the sum of those amounts. Shouldn't we just make that the selling price?
Again, all of these reimbursements precipitated out of the closing on the installment sale. It is counter-intuitive to me to account for them in our Rental income/expenses Schedule E. Please explain why that's the appropriate choice. (BTW, we never claimed any depreciation on the property; it was inherited just a few years ago.)
