Filing Income Taxes With Note Income

[Brittani Gardner]

Looking for help on seller financing my primary residence (of 2 1/2 years) when I move out later this year. I have an FHA loan, and have renovated the kitchen.

I am trying to figure out how to structure the deal to make the most sense for income tax purposes.

I assume I still claim mortgage interest deduction on my loan. 

1. Is this the only tax deduction I can claim? 

2. Does depreciation come in to play with deals that are seller financed?

3. How do I handle the income? 

4. What is the difference between note income and rental income?

This is just a starting point, so if I am missing information that would allow some tax professionals, and/or seller financing experts to help answer my questions please let me know - google searches on this subject don't yield great results so any and all help/direction on this matter would help me tremendously.