You would enter this as an installment sale.
To enter this sale in TurboTax you will select the following:
- Federal
- Income and Wages
- Installment Sales Under Miscellaneous Income
- Walk through and enter all of the information for the entire property
- Enter the payments received in 2023 and enter the amount for interest received and hit continue.
- TurboTax will do the calculations from there
If this was your primary home and you want to exclude some of the capital gains from your income, you can opt out of the installment sales method and report the entire sale on your return this year. You would then just report the interest you receive for the mortgage annually on your return as interest income.
Installment sales
Opting out of Installment Sales
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