I sold my small business in 2021. On installment payments. Is it considered a "Seller Financed Mortgage"?

[nana77]

I have only received 2 small payments.  one in 2021 and one in 2022.  I did not fill in the info as "Seller Financed Mortgage" so no name was listed as buyer.  Now the first buyer has defaulted and resold to another party, which has signed a new agreement with me to finish the payoff.  Each year a 6252 and 4797 were generated.  Is this considered a Seller Financed Mortgage and if so why didn't TT flag it as a problem when I didn't report a  buyer name?

[PatriciaV · Accepted solution]

A seller financed mortgage is typically associated with the sale of a residence. Since you sold a business, this would not be considered seller financed, even though it remains an installment sale.

[nana77]

Thank you Patricia,  I had assumed that was the case and also the reason TT let me file it that way the last two years. I don't think the IRS cares who is paying me (or not paying me) as the case may be.  lol