Well after all these years they make their last payment in October, I have reported the payments as income on my taxes.

I was just gonna do a quit claim deed. with the new owners and call it a day. Taxes on the house are paid and I even covered their homeowners
insurance until Dec.

Since I have been reporting the payments as rent to own income yearly(not rental income) should I owe any sales taxes?

Thanks
Free

Damn son, no one expects you to actually sign that shit over.  Looks back through your records, I am sure they were late on a payment or had a dog that violated a contract.  Just fucking with you.

LOL

Actually they were my best tenants, I think I am good since I claimed the payments on my taxes, just want to keep myself legit.

Just wanted a second opinion.

Wow someone actually managed to pay off a rent to own house

Sorry OP no idea on your question. 

I suggest consulting a RE attorney in your area for the best advice on how to proceed and deal with tax issues.

The contract should have specified what type of deed would be used to transfer.

A 'General Warranty Deed' is typical.

That means you are on the hook for deed claims.

I would never accept a 'Quit Claim' under these circumstances.

I used General Warranty Deeds  when I transferred 'Rent to Own' properties.


It sounds like you probbaly messed up the taxes also.

You should have taken depreciation since the IRS will impute it to you no matter what.

And part of the payments above market rent are towards the purchase.

Find a good tax attorney to fix the mess it appears you have created.

At least he can bargain with the IRS without reveling your name.

This is NOT an area to make mistakes.

I have been the sole owner of the home since it was built, it has a clear deed and I have kept the taxes current.

Their was only one lien/mortgage on the home that was paid off years ago.

We counted the payments as income, so why would I have a IRS problem?

We did what the tax office advised us to do with the payments and made sure it was not listed as rent payments.

We also included the payments as taxable income on our state forms as well. Can you tell me what I did wrong?

We didn't charge them interest so I don't know what we did wrong.

Thanks
 Free

No shit...he made it sound like you have to give up your first born now.  

No depreciation?

Git a RE atty and an accountant

I wouldn't accept a quitclaim.  General or Special Warranty Deed only.

Quitclaim just says you're relinquishing whatever interest you may have in the property.

General says you warrant the title for all time, Special says you warrant the title during the tenure of your possession.

Part of those payments would have been considered principal payments not subject to income tax and instead subject to potential capital gains tax.

House was paid off and I didn't charge the buyers any interest

No capital gains, sold house for less than tax value(old double wide).

Had my lawyer draw up the deed, tax etc.

I am no longer a slumlord