You
can choose to enter the sale in one year or you can choose to enter an
installment sale if the overall net result is a gain. The latter allows
you to report only the portion of the gain you actually received each year and
the interest income. The original cost plus improvements will be the purchase
price. If you used any depreciation expense be prepared with the total
accumulated depreciation amount.
To
enter an installment sale in TurboTax (Form 6252) follow these steps:
- Select Federal > Wages
& Income > Less Common Income
- Select Installment
Sales
- Click continue and
the interview will guide you from there.
To
enter the entire sale in the year of sale you can use the steps below:
- Federal
- Select Wages & Income
- Scroll to Investment
Income
- Select Stocks,
Mutual Funds, Bonds, Other
- Continue and
select Second Home
- Follow the screens
to complete your entries
If
you choose the installment method, do not enter the interest income
twice. If you choose to report the sale all in one year, then record the
interest income also. (Search for seller
financed interest > Jump to seller financed interest)
