Where in turbotax premier do I enter the write off amount for unpaid installment sale payments? The installment sale section of turbotax premier only accept positive payment amount. Thanks in advance for any help. David
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I'm making a "LOT" of assumptions here.
- You did a formal and legal installment sale where the property ownership was transferred to the buyer, with you as the lien holder.
- The buyer stopped paying and you performed a legal foreclosure on the property making you the owner now.
You have nothing to write off. In fact, whatever money you did receive from the buyer prior to foreclosing on the property, is subtracted from your original cost basis now.
This can and will get complicated on the tax front and while the TurboTax program can handle it, if you don't know "exactly" what you are doing, you will report things wrong. You should seek professional help from a CPA in your locale this year because of this. It's particularly important you get professional help if your state taxes personal income too. Otherwise, mistakes on the federal side will flow to the state taxes, and your fines, penalties, late fees and back taxes could be double. It makes the cost of professional help seem like a pittance in comparison. So please seek professional help this year.
Okay, got it. Thanks. David
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