how do you tax file a owner financed payments?

[Annette A.]

would that funds be filed under sche D as capital gains, but then how do you figure if there is any gain when its not yet paid?

How do you file owner financed income?

[Wayne Brooks]

A CPA can set it up pretty quick.

Your payments received will be 2 components: interest, and principal.

The interest is income, not cap gains.

The principle received will be 2 components : return of basis, and cap gain. I.e. 60%/40%, 70%/30%, etc.  Return of basis is not taxable, cap gains are taxable.

You will also have depreciation recapture, due in full the year of the sale.