According to the tax law this would fall under the rules for installment sale. You are required to report gain on an installment sale under the installment method unless you "elect out" on or before the due date for filing your tax return (including extensions) for the year of the sale. The year of sale is the year the contract was entered into. To enter an installment sale (Form 6252) in TurboTax Premier :Federal Taxes tab,Personal IncomeI’ll choose what I work onSelect Business ItemsLess Common Business SituationsSale of Business Property Any other property salesCheck the box titled sales of real estate, cars or anything else for which you receive payments over two or more years Click continue & the interview will guide you from there. What Is an Installment Sale? An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. It does not apply in sales where there was a loss.Interest must be reported each year. If there is no stated interest in the contract, then unstated or imputed interest must be calculated and reportedFor more information, please refer to IRS Publication 537 - "Installment Sales" at the following link: https://www.irs.gov/pub/irs-pdf/p537.pdf

Question

I sold property in 12/2017 and used the installment plan. However, where do I enter the information on the installment sale?

Forum|Forum|7 years ago
June 4, 2019
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TurboTax Premier Online

K

KennethB

According to the tax law this would fall under the rules for installment sale. You are required to report gain on an installment sale under the installment method unless you "elect out" on or before the due date for filing your tax return (including extensions) for the year of the sale. The year of sale is the year the contract was entered into.

To enter an installment sale (Form 6252) in TurboTax Premier :

Federal Taxes tab,
Personal Income
I’ll choose what I work on
Select Business Items
Less Common Business Situations
Sale of Business Property
Any other property sales
Check the box titled sales of real estate, cars or anything else for which you receive payments over two or more years
Click continue & the interview will guide you from there.

What Is an Installment Sale? An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. It does not apply in sales where there was a loss.

Interest must be reported each year. If there is no stated interest in the contract, then unstated or imputed interest must be calculated and reported

For more information, please refer to IRS Publication 537 - "Installment Sales" at the following link: https://www.irs.gov/pub/irs-pdf/p537.pdf

Carl11_2

Employee

If this was rental property you sold, you start reporting the sale in the Rental & Royalty Income section. This way the disposal of the rental assets (as sold) is accounted for. You'll get to a point where it will ask if it's an installment sale. Select YES and the interview will guide you through the process.
If you have more than one asset listed in the rental assets section, let me know and I'll help you with a shortcut so you don't have to go through the installment sale process with each individual asset.

R

Redan54

@Carl11_2what is the shortcut if there's lots of assets in that particular property?

I see where it says to just report it in Installment Sales not Sch E https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-trying-to-report-an-installment-sale-of-rental-property-why-does-turbo-tax-double-count-as-gain/01/1674782#M54768 I went thru just the Installment Sales section and now I have 2 entries in my for the same property.

One entry was generated by the Rental Income interview (took forever to go thru each asset and deal with the allocation $) and one entry was generated by the Installment Sale section (super ez to fill out)...

Was the shortcut "go thru Rental Income all the way & pretend it is still owned" and then go to the section where it says Rental Property Sold not mentioned anywhere else in the program & do installment sale there? It seemed like the stand alone Installment Sale under "property sold not mentioned elsewhere" was the easiest way (even tho it later asks is this one of the previously mentioned rental properties to link) coz it just asked for overall depreciation instead of individual asset depreciation and actually asks for the total price sold in Installment Sale section.... whereas when I went thru the Rental Income's Installment Sale section it only asked for the principle payment & interest received in 2019 and no questions (that I came across during the Rental section's Installment Sale area) were asked about the overall total price sold by the end of 2022....