I purchased a house to fix up in Feb 22 for 93K I spent 2K b4 sold on installment in July 22 for 115K. I rec'd 4K down payment and $3K in pmts Aug-Dec How do I report?

Forum|Forum|3 years ago
February 5, 2023
2 replies
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Do I report the 7K of income (4K + 3K) less $2K of expenses in 2022? Not sure what forms?
or do I wait until I receive the 1st payment in the year AFTER the sale to report any of this? TIA

TurboTax Online

Mike9241

Level 15

if this is not a business you use form 6252 to report the installment sale. if this is your business the house would be inventory and the sale of inventory can not be reported on the instalment method

read the instructions. it may make it easier to complete the Turbotax form

https://www.irs.gov/pub/irs-pdf/f6252.pdf

Ordinarily, an
installment sale doesn’t include a disposition
of personal property by a person who
regularly sells or otherwise disposes of
personal property of the same type, or a
disposition of real property that is held by the
taxpayer for sale to customers in the ordinary
course of the taxpayer’s trade or business

Mike9241

jdfkinAuthor

Level 3

Thank you for your reply. Very helpful but need a little clarification. What constitutes whether it’s a business or not? I have a full time job and this seemed like a good investment opportunity outside of my normal job and I may do more in the future.