Tax On Sale Of Property At A Loss

by Patricia
(Canon City, CO, USA)

My husband and I recently purchased a house and are selling the mobile home (and the 2 lots it sits on) that we lived in for the past 10 years. We paid $47,500 for it (and the land), and are now selling the package for $33,000.

The property is paid off - we no longer owe anything on it and have the deed, free and clear. We are carrying the note at 5% interest for our buyer, whom we have known for over 30 years.

We originally financed our purchase at 10%. The buyer will be paying us monthly payments. We shouldn't have to claim this as income, should we?