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Level 1
June 5, 2019
Solved

Should I file as rental, installment sale, or investment on second property?

  • June 5, 2019
  • 1 reply
  • 2 views

Purchased 7/2017 for son in law until he could get loan by himself in 2018.  Bought and set up on contract with him for my protection, a residential land contract.  He decided he wanted out of contract in Dec and signed deed back over to me in Jan.  He paid me $350 a month, which paid property taxes, homeowners insurance, and rest to principle and interest on my loan.  So I made no profit.  For 2017 tax year, how do I file this?


Best answer by MinhT1

You did not rent your property for profit and actually had no profit, so you do not report this as a rental property.

It is considered as a second home for you and you can claim mortgage interest and property taxes on the house in Schedule A - Itemized deductions.

1 reply

MinhT1Answer
Level 15
June 5, 2019

You did not rent your property for profit and actually had no profit, so you do not report this as a rental property.

It is considered as a second home for you and you can claim mortgage interest and property taxes on the house in Schedule A - Itemized deductions.

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