Hi Mike9241,
I initially ordered the online version of TurboTax in January or February of 2024 to complete my 2023 taxes. But, due to issues with my parent's estates taking longer to complete, I was not able to complete the 2023 taxes by April 15th. Since I overpaid my 2023 taxes, I asked and received a 6-month extension. Unfortunately, my parent's estates were still getting completed. So, I asked for a 2nd extension. The IRS recently requested another 60 days to determine if I get a 2nd extension. Since I passed the 1st extension, I can no longer use the online version. I was told I need to download a version of TurboTax and print and mail my return. This is fine. I have been a happy TurboTax customer for the last 19 years and like the product.
My concern is that when I create an Installment sale in either the 2023 or 2024 TurboTax, I get depreciation. I worked with an enrolled agent to verify my inputs were correct on a working copy of Form 6252. She agrees that we should not have depreciation but is not familiar with TurboTax software as she uses another system. Since I do not have the 2023 online version of TurboTax, I have been using the 2024 online free version to test different inputs to try and resolve the depreciation. I have not been able to do that. If I can eliminate the depreciation with reasonable inputs, I will happily use Turbo Tax for another 19 years.
When working in the free version of 2024 TurboTax here are my inputs I used to create an installment sale:
Desc of Property Twin Lakes lots
Property type Code Time Share or residential lot
Date Property acquired Various
Date Property sold 7/8/2014
Selling Price $44,950
Cost Basis $14,042*
Can the selling price be yes
determined the year of
sale
What is the holding period Long Term (greater than 12 months)
Gross Profit Percentage 0.6876
Amount of Principal Paid $18,620
prior to 2023
Was this property used no
as a business or rental
at time of sale
Did you sell stock in this no
installment sale
You stated this is not a yes
collectible. Is that correct
Was the property used in a no
passive activity
Principal received in 2023 $292**
Interest received in 2023 $241**
Is interest from a mortgage not checked***
on a home the buyer resides
in
Was final payment received... not checked
Was the sale to a related party no
TurboTax states my long term gain is $201, which I believe is correct
TurboTax states I have depreciation and asks if I would like to use the same or different value of depreciation for my AMT calculation????
* for this number I combined both the cost basis and selling cost. This gave me the same Gross profit percentage as my parents had (0.6876) on line 19 of Form 6252.
** I only received both the November and December payments of both principal and interest in 2023.
*** my parents sold land to the buyer. He later built a house on the land and resides in the home with his wife. I have tried inputting with this box unchecked and checked and it still shows depreciation.
Thank You for your help,
Mark
