After converting a house from a rental to an installment sale, the mortgagee has paid off the loan with me. Does this lump sum go on the 4797?

[Coleen3]

Did you file a Form 6252 in prior years?

[michellemk39]

yes for the installments

[Coleen3]

You would enter the payment on the Installment Sale Form 6252. That will carry it to the Form 4797. You have to conclude the installment.

[michellemk39]

turbotax asked me if this was the last payment, but then did not prompt the closing steps. Does the payoff amount go on line 21, since the payoff is the last payment?

[michellemk39]

i.e., Do I add the payoff to the installments?

[Coleen3]

Yes. 21 Payments received during year. There is no formal closure. The fact that it is paid off and there will be no more Forms 6252 does that.