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Level 1
November 17, 2022
Solved

Balloon payment of installment sale.

  • November 17, 2022
  • 1 reply
  • 27 views

Is the balloon payment considered capital gains

    Best answer by DavidT0202

    Hi @jhawktn 

     

    if this has been reported it as an Installment Sale,  You will pay taxes on gain based on when you receive the payments for the 'principal' (in your case a balloon payment).  This is taxed at the capital gains rate. 

     

     

    Thank you for Choosing TurboTax!

    1 reply

    DavidT0202
    Level 5
    November 17, 2022

    Hi @jhawktn 

     

    if this has been reported it as an Installment Sale,  You will pay taxes on gain based on when you receive the payments for the 'principal' (in your case a balloon payment).  This is taxed at the capital gains rate. 

     

     

    Thank you for Choosing TurboTax!

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