You are correct, there is no place on a tax return that is labeled 'Gain on Repossession'. It is reported as though it were a sale and using your details above is the correct way to enter it. I would advise to enter a description of the property as Repossession and you can use Various for the dates of purchase and sale, then select short term for the holding period. However, using dates that represent the short term holding period, if applicable will produce the same result.
If you did not receive any installment payments or interest from the installment sale in 2020, you can delete your Form 6252 by using the following steps.
- Open your tax return > Use the Search box (upper right) > Type installment sales (plural) > Press enter > Select the Jump to... link
- Click the delete button or the trash can depending on your TurboTax version (Online or CD/Download).
If you did have any payment activity, you should leave the installment sale and delete it next year.
This situation is not common and does take specific actions to enter the gain on the repossession. For information about determining the actual gain on the repossession IRS Publication 4681 will provide the details.
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