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Business & farm
Yes, you are correct. The step-by-step interview does not offer a topic specific to installment sale payments & interest. You can designate that a sale of business/rental property was an installment sale, which will trigger Form 6252.
Any interest paid with the principal received during the year may be entered under Federal >> Income >>Other Income >> All Other Income. Your entry and description will appear on Form 1065 p1-4 Line 7 and on Schedule K Line 14c (SE-Gross nonfarm income).
Note that according to IRS Tax Topic 705 - Installment Sales, "You generally report interest on an installment sale as ordinary income in the same manner as any other interest income."
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March 10, 2024
9:09 AM