Installment sale on real estate: I sold the property on a 5 year balloon and I receive monthly payments from the buyer in the amount of $792.00 per month. However, I sti

[garyrecer]

still owe Bank of America on the original mortgage and I pay them $498 per month.
I know how to report the income, but how do I deduct the $498 per month that I am paying to B of A?

[hj6569nyc]

The $498 should be taken off  as a business expense and not included as income. Try using quick books as your accounting software.