If these were not sales expenses but were actually incurred while the property was being rented, enter them on Schedule E. Please see this LINK for instructions on how to enter expenses on Schedule E.
Line 5 of Form 6252 includes the following:
Line 5
Enter the total of any money, the face amount of the installment obligation, and the FMV of other property or services that you received or will receive in exchange for the property sold. Include on line 5 any existing mortgage or other debt the buyer assumed or took the property subject to. Don’t include stated interest, unstated interest, any amount recomputed or recharacterized as interest, or original issue discount.
Line 8 refers to costs at purchase:
Line 8
Enter the original cost and other expenses you incurred in buying the property. Add the cost of improvements, etc., and subtract any casualty losses and any of the following credits previously allowed with respect to the property.
An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. You can read more about it here. Here’s how to report one in TurboTax:
- 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.
Form 6252
