Inherited Property

[ddoctor7]

My Sister and I have inherited our Mom's house and are now going to Owner Finance to the tenant/buyer that was renting the house.  What would be consider income that we need to report as taxable?  Is it the principle and interest, or just the interest?  Also, would this be consider rental interest?

Thank you.

[Anonymous_]

You will have to report this transaction as an installment sale (unless you elect out).

It would be wise to consult with a local tax and/or legal professional.