Here is how to enter Installment Sale:
- Open your return in TurboTax.
- In the search box, search for installment sales and select Jump to installment sales.
- Check the box next to Sales of real estate, cars, or anything else for which you receive payments over two or more tax years (installment sales). Select Continue.
- Answer Yes to Do you want to report an installment sale?
- Follow the instructions to enter your sale details.
An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. For example, if you sell a rental property, and the buyer agrees to pay you over a five-year period, that’s an installment sale.
You can report part of your gain when you receive each payment, rather than all of your gain in the year of the sale. This is called the installment method. You can opt out of the installment method by reporting the gain in the year of the sale. However, you must make this election by the due date of your return, including extensions. You can't use the installment method to report a loss.
Here’s how to report an installment sale in TurboTax and create a Form 6252
Link to Installment Sale InformationInstallment Sale
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