- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
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