Carry-back fit for exemption

      DEAR BOB: I plan to sell my home for 15 percent down payment and carry back an 85 percent mortgage for retirement income. Since this will be an installment sale with principal payments coming in for the next 20 years, can I still use the new $250,000 home sale tax exemption? -- Steve T.
      DEAR STEVE: Yes. But just in case the tax law is changed, you should probably "unelect" out of the installment sale tax deferral and report your entire principal residence sale profit in the year of sale. Of course, the interest received will be taxed as ordinary income. Your tax advisor has details.
      -- Send your questions to Robert J. Bruss, Tribune Media Services, 435 N. Michigan Ave., Suite 1400, Chicago, Ill. 60611.