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Updated almost 6 years ago,
Homeowner Capital Gains Exemption with seller financing - taxes
I need help, i have talked to multipile CPA's and they can't seem to find an answer to my question. I sold my personal residence this past year using seller financing. I still have a mortgage on the property. I pay the mortgage taxes and insurance every month at $1300 and the buyer pays me $2200 PI +300 taxes and insurance every month. I lived in the home for over two years and want to use the home owner capital gains exemption on the $100k of gain I had on the property. How do I report this on my taxes? Do I report the sell of the home, and skip the installment sale section and just use form 1099 INT for the interest i receive from the buyer? this seems to be the easiest way. But i don't want to do something wrong, should i use the installment section but I don't want to pay and gain on the property.
Thanks,