Investment property selling price:$1,000,000
Down payment by the purchaser: $500,000
Seller gives Vendor Take Back Mortgage: $500,000 @ 10% for 5 yrs (simple interest not compounded, just to keep it simple)
What are the tax implications here. Let's assume that the sale is considered a Capital Gain and not business income. What is the Capital Gain and how is the Yearly interest income treated.