If you did a seller financed sale (which is an installment sale) then I can't help much with that really. I myself have never done an installment sale, and honestly don't understand why anyone would even consider it when selling something such as real estate.
But I do know that when reporting the sale in the SCH E section of the program, one of the questions asked somewhere along the line, is if this was an installment sale. If you have multiple assets listed for the property in the assets/depreciation section this is a real PITA doing all the math you have to do manually to split your income each year from the sale, proportionally across all assets showing a gain on all assets if you sold at a gain, or a loss on all assets if you sold at a loss.
There is another way to do this, but let me make your choices clear.
Reporting the installment sale across assets in the SCH E section of the program is the same as getting from point A to point B in a straight line by using a machete to cut a swath in the jungle between the two points. It'll take you three hours.
The other way to get from point A to point B is to walk around the jungle. It may be an easier trip. But its longer and will still take you three hours.
So if you have a multitude of assets I would recommend walk around the jungle.
Work through the SCH E section of the program for that property and in the Property Profile section "do' "not" indicate that you sold the property. Instead, indicate that you "converted it to personal use" Then on the next screen, (and I can't stress this enough) *READ* *THE* *SMALL* *PRINT*. Otherwise, your selections WILL be wrong. New even if the last renter moved out months before you sold it, then provided you did not live in the property for one single day, YES YES YES THE PROPERTY WAS RENTED ALL YEAR! Finish working through the Property Profile section.
Next, elect to start/update the Assets/Depreciation section. YOu will need to do several things as you work through each individual asset one at a time.
- Wire down the COST and the PRIOR DEPRECIATION of this asset. (Don't worry about the amount in COST OF LAND, as it's already included in COST)
- Select YES, I stopped using this asset in 2019
- The date of your sale or disposition will be the closing date on your sale of the property.
- YES! Special Handling *IS* Required!
- Write down your 2019 depreciation on this asset.
Once you have done all the above for each individual asset, Add up all the COST amounts and that's your cost basis. Then add up all the depreciation amounts (both current and prior years) and that's the total depreciation you have taken on the property.
Finish working through the rest of the SCH E section.
Now with the math you did manually, you have your Cost basis and total depreication taken, and that's all you need to report this sale in the "Sale of Business Property" section. After you enter all the data asked for in the "Sale of Business Property" section you'll be given the opportunity to report it as an installment sale.
