Halomotel
New Member

Get your taxes done using TurboTax

Hi! I am in the same predicament and filed for extension so that I have time to search on how to file the return.  I sold on contract in 2017 and buyer defaulted and I repossessed the investment property on Jan 2020. I filed  Form 4797 for 2017 and paid Kansas State capital gain tax.

Would you share how you file form 4797. Is it  consider another sale to the same buyer? Do I add the principal monthly payments without interests which were reported in past years as interest income.