Seller Financing and Tax implications for seller carrying

[Patrick Brooks]

Hi All,

I'm a new Pro member and excited about using this platform more and more. I've been in Real Estate for almost 8 years now and it may be bad that I don't know this but; when a seller carries a loan, what taxes do they incur? Is it just taxes paid on the down payment and income made off the payments/interest? 

Someone told me they thought the seller would have to pay tax on the total sales price even if he is not getting the money at once which I don't think makes logical sense.

Any input would be greatly appreciated.