Workers also pay the FICA tax, which covers Medicare and Social Security. Similar to FICA, self employment tax requires you to pay both the employer and employee portions because you work for yourself. However, you are right that it isn’t liable to such taxes.
FICA tax not applied. A formal and signed lending agreement is required. Placing a mortgage lien on the home might be a wise decision. You must charge a minimum interest rate, and the interest you earn will be subject to standard income taxes. Although it is unearned income, it differs from rental income. Have you opened an account for escrow? If not, be sure to closely monitor the payment of property taxes. Ideally, you were able to track compliance by including an insurance need in the loan document and writing it down.
No. The sale is recorded as an installment sale. And the interest part is recorded on schedule b. There won’t be any tax due on the principal amount because you’re selling without realising a capital gain.
Most likely you should be informed about what you did and how any potential gains and interest income would be taxed. Schedule a meeting with an expert and obtain clarification.