If the land was sold in 2019 and payments started that year, the transaction and the payments received should have been reported as an installment sale in 2019 on form 6252.
Form 6252 is used to report the sale in the year it takes place and to report payments received in later years.
You can report the 2020 income from an installment sale by following these steps:
- Click on Federal > Wages & Income
- Scroll down to the Less Common Income section and click on the Start/Revisit box next to Installment Sales. On the Installment Sales screen click on the Yes box.
- Continue through the interview, entering the requested information.
If you did not report the sale in your 2019 return, you should amend that return, entering the 2019 proceeds received from the installment sale.
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