Tax to pay for flip properties by seller finance structure

[Vickie Tan]

I am a real estate agent, I flip some properties in 2010. One of the property I bought , after the fixup I sold it as seller finance deal in 90 days. I need advice on if I may claim as a real estate professional or a real estate dealer that I have to report the whole gain even though I only receive installment payments down the road . :oops:

[Account Closed]

Typically a seller finance transaction is treated as an installment sale. Also if you are a dealer (which likely you are) this will be ordinary income as opposed to capital gains.