Investors & landlords

The Form 6252 is scheduled to be available soon (March 3, 2022), as indicated by our awesome tax expert @HelenC12. Once the form is ready and available you can complete your tax return.  Below are some details to help you and the link to check for the form availability.

• When will federal forms be available?

Who can choose to report an installment sale?

Generally, an installment sale is a disposition of property where at least one payment is received after the end of the tax year in which the disposition occurs.

• Ordinarily, an installment sale doesn’t include a disposition of personal property by a person who regularly sells or otherwise disposes of personal property of the same type, or a disposition of real property that is held by the taxpayer for sale to customers in the ordinary course of the taxpayer’s trade or business. (Property that is used in the ordinary course of your business activity.)

Unstated or low Interest: 

The test rate of interest for a contract is the 3-month rate. The 3-month rate is the lower of the following applicable federal rates (AFRs). • The lowest AFR (based on the appropriate compounding period) in effect during the 3-month period ending with the first month in which there’s a binding written contract that substantially provides the terms under which the sale or exchange is ultimately completed. • The lowest AFR (based on the appropriate compounding period) in effect during the 3-month period ending with the month in which the sale or exchange occurs.

To record an Installment sale in TurboTax Online:

1. Click on Search (upper right) and type Installment Sales > Press enter > Click on "Jump to Installment Sales"
2. On the page "Any Other Property Sales" check the box for: "Sales of real estate, cars, or anything else for which you receive payments over two or more tax years (installment sales)" and click Continue
3. On the Installment Sales page answer yes to "Do you want to report an installment sale?"
4. Continue through the interview and record the details of your Installment Sale