Sold home on land contract

[richpatrie]

I sold a rental property on a land contract. I hold the deed until the final payment is made. I also have a mortgage on the property  that I pay with the proceeds of the buyer to the bank.

When the buyer files taxes, they claim the interest paid to me. I must claim interest received, but can I also claim the interest I'm paying on the mortgage to the bank? 

[PatriciaV]

This interest may qualify as investment interest expense, which is limited to the amount of net investment income you earned for the year. You report investment interest expense in the section Retirement and Investments. Proceed through that section, reading all the information provided and making all the necessary entries. The interest expense will be reported on Schedule A as an itemized deduction.

Additional Information:

• IRS: Investment Interest Expense
• What Are Deductible Investment Interest Expenses?
• How does the standard deduction differ from itemizing deductions?