This sounds like an installment sale or a seller financed mortgage. Here is how to report in your Turbo Tax business product.
- Go to federal taxes>rental real estate
- Dispose of Business Property
- Business Property Assets
- Begin answering the questions
- As you proceed through the interview, it will will ask how you disposed of the asset. Here you will say sold. If the money received was more than the basis of the property, then you can answer the question if this an installment sale and then answer the series of questions the follow. One of the question that will be asked is how much mortgage was assumed.
- Now once everything is said and done, the income will appear on each partner's K1 of their share of the gain/loss. This appears in Part 3, line 1 as ordinary income or loss in each K1.
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