Purchased a home contract for deed 11/1/23. Do I need to claim on taxes?

[MonikaK1]

You don't have to report the purchase of a home on your tax return unless it is being used for rental or business purposes, in which case it would need to be listed as an asset and depreciated.

A contract for deed, also known as a land contract, is an alternative method for financing the sale of a house or other real estate. The buyer and seller agree to an installment plan, where the buyer pays the seller directly over a period of time instead of in one lump sum when the transaction closes. 

In a contract for deed, the purchase of property is financed by the seller rather than a third-party lender such as a commercial bank or credit union. The arrangement can benefit buyers and sellers by extending credit to homebuyers who would not otherwise qualify for a loan.