seller held mortgage- how to handle settlement
Hello, I held a private mortgage for my home in NY for the new buyers so they could buy the house, due to tough selling market about 12 years ago.
At the time of closing there was no transfer of money and it ending up costing me the real estate/legal fees out of my own pocket with only a very small downpayment.
I have since then moved to NJ and bought my primary residence and have paid the appropriate taxes on interest income over the years from the mortgage I provided.
In Feb of this year the buyer refinanced the mortage with a company and I got a settlement of the balance.
How do I treat this amount on my tax returns and what areas would quailify for deductions? thanks for any help you can give.